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Derivative Instruments
 3 Months Ended
Jan. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
DERIVATIVE INSTRUMENTS

As of January 31, 2020, the Company had entered into corn and ethanol derivative instruments, which are required to be recorded as either assets or liabilities at fair value in the balance sheet. The Company uses these instruments to manage risks from changes in market rates and prices. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. The Company may designate the hedging instruments based upon the exposure being hedged as a fair value hedge or a cash flow hedge. The derivative instruments outstanding at January 31, 2020 are not designated as effective hedges for accounting purposes.

Commodity Contracts

Management expects all open futures positions outstanding as of January 31, 2020 to be realized within the next twelve months.

The following tables provide details regarding the Company's derivative instruments at January 31, 2020 and October 31, 2019:
          Instrument
Balance Sheet location
 
January 31, 2020
October 31, 2019
 
 
 
 
 
Corn, natural gas and ethanol contracts
 
 




In gain position
 
 
$
78,903

$
124,069

In loss position
 
 
(883,788
)
(775,887
)
Deposits with broker
 
 
1,213,798

1,121,558

 
Current assets
 
$
408,913

$
469,740



The following tables provide details regarding the gains (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments:
 
 
Statement of
 
Three Months Ended January 31,
 
 
Operations location
 
2020
2019
Ethanol contracts
 
Revenues
 
61,271

$
(135,797
)
Corn contracts
 
Cost of goods sold
 
38,355

675,365

Natural gas contracts
 
Cost of goods sold
 
6,321

19,806