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Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments DERIVATIVE FINANCIAL INSTRUMENTS
At June 30, 2024, the company’s consolidated balance sheet reflected unrealized losses of $2.8 million, net of tax, in accumulated other comprehensive loss. The company expects these items will be reclassified as operating loss over the next 12 months as a result of hedged transactions that are forecasted to occur. The amount realized in operating loss will differ as commodity prices change.
Fair Values of Derivative Instruments
The fair values of the company’s derivative financial instruments and the line items on the consolidated balance sheets where they are reported are as follows (in thousands):
Asset Derivatives'
Fair Value		Liability Derivatives'
Fair Value
June 30,
2024		December 31,
2023		June 30,
2024		December 31,
2023
Derivative financial instruments - forwards$4,614 
(1)
$13,311 
(2)
$16,783 

$10,577 

Other liabilities— — 209 2 
Total$4,614 $13,311 $16,992 $10,579 
(1)At June 30, 2024, derivative financial instruments, as reflected on the balance sheet, includes net unrealized gains on exchange-traded futures and options contracts of $13.0 million, which included $0.2 million of net unrealized losses on derivative financial instruments designated as
cash flow hedging instruments, $0.8 million of unrealized gains on derivative financial instruments designated as fair value hedging instruments, and the balance representing economic hedges.
(2)At December 31, 2023, derivative financial instruments, as reflected on the balance sheet, includes net unrealized gains on exchange-traded futures and options contracts of $6.5 million, which include $0.7 million of net unrealized gains on derivative financial instruments designated as cash flow hedging instruments, $0.7 million of unrealized gains on derivative financial instruments designated as fair value hedging instruments, and the balance representing economic hedges.
Refer to Note 4 - Fair Value Disclosures, which contains fair value information related to derivative financial instruments.
Effect of Derivative Instruments on Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income
The gains or losses recognized in income and other comprehensive income related to the company’s derivative financial instruments and the line items on the consolidated financial statements where they are reported are as follows (in thousands):
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated Other
Comprehensive Income into Income		Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Revenues$— $(1,518)$3,736 $(1,518)
Cost of goods sold(2,298)(3,218)(13,021)(5,454)
Net loss recognized in loss before income taxes$(2,298)$(4,736)$(9,285)$(6,972)
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
Gain (Loss) Recognized in Other Comprehensive Income on
Derivatives		Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Commodity contracts$(863)$932 $(8,822)$(15,879)
A portion of the company’s derivative instruments are considered economic hedges and as such are not designated as hedging instruments. The company uses exchange-traded futures and options contracts to manage its net position of product inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations. Derivatives, including exchange traded contracts and forward commodity purchase or sale contracts, and inventories of certain agricultural products, which include amounts acquired under deferred pricing contracts, are stated at fair value. Fair value estimates are based on exchange-quoted prices, adjusted as appropriate for regional location basis value, which represent differences in local markets including transportation as well as quality or grade differences.
Amount of Gain (Loss)
Recognized in Income on Derivatives
Derivatives Not Designated as
Hedging Instruments		Location of Gain (Loss) Recognized in Income
 on Derivatives		Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Exchange-traded futures and optionsRevenues$(146)$(3,269)$(1,219)$(11,145)
ForwardsRevenues(1,715)3,967 (4,444)4,626 
Exchange-traded futures and optionsCost of goods sold8,617 25,367 11,654 33,733 
ForwardsCost of goods sold(9,559)(32,713)(6,691)(32,287)
Net gain (loss) recognized in income (loss) before income taxes$(2,803)$(6,648)$(700)$(5,073)
The following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for the fair value hedged items (in thousands):
June 30, 2024December 31, 2023
Line Item in the Consolidated Balance Sheet in Which the Hedged Item is IncludedCarrying Amount of the Hedged AssetsCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged LiabilitiesCarrying Amount of the Hedged AssetsCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
Inventories$17,083 $(1,373)$45,898 $(1,104)
Effect of Cash Flow and Fair Value Hedge Accounting on the Statements of Operations
Location and Amount of Gain (Loss) Recognized in Income on Cash Flow and Fair Value Hedging Relationships for the Three Months Ended June 30,
20242023
RevenueCost of
Goods Sold		RevenueCost of
Goods Sold
Loss on cash flow hedging relationships
Commodity contracts
Amount of loss on exchange-traded futures reclassified from accumulated other comprehensive income into income$— $(2,298)$(1,518)$(3,218)
Gain (loss) on fair value hedging relationships
Commodity contracts
Fair-value hedged inventories— 1,014 — (1,063)
Exchange-traded futures designated as hedging instruments— (2,858)— 1,247 
Total amounts of income and expense line items presented in the statement of operations in which the effects of cash flow or fair value hedges are recorded$— $(4,142)$(1,518)$(3,034)
Location and Amount of Gain (Loss) Recognized in Income on Cash Flow and Fair Value Hedging Relationships for the Six Months Ended June 30,
20242023
RevenueCost of
Goods Sold		RevenueCost of
Goods Sold
Gain (loss) on cash flow hedging relationships
Commodity contracts
Amount of gain (loss) on exchange traded futures reclassified from accumulated other comprehensive income into income$3,736 $(13,021)$(1,518)$(5,454)
Gain (loss) on fair value hedging relationships
Commodity contracts
Fair-value hedged inventories— (3,347)— (10,420)
Exchange-traded futures designated as hedging instruments— 2,404 — 11,925 
Total amounts of income and expense line items presented in the statement of operations in which the effects of cash flow or fair value hedges are recorded$3,736 $(13,964)$(1,518)$(3,949)
The notional volume of open commodity derivative positions as of June 30, 2024, are as follows (in thousands):
Exchange-Traded (1)
Non-Exchange-Traded (2)
Derivative
Instruments		Net Long &
(Short)		Long(Short)Unit of
Measure		Commodity
Futures(18,380)BushelsCorn
Futures12,300 
(3)
BushelsCorn
Futures(660)
(4)
BushelsCorn
Futures(3,864)GallonsEthanol
Futures(34,230)
(3)
GallonsEthanol
Futures(1,958)MmBTUNatural Gas
Futures9,513 
(3)
MmBTUNatural Gas
Futures(5,760)
(4)
MmBTUNatural Gas
Futures13 TonsSoybean Meal
Options961 BushelsSoybeans
Forwards25,289 — BushelsCorn
Forwards— (226,298)GallonsEthanol
Forwards124 (231)TonsDistillers Grains
Forwards— (58,803)PoundsRenewable Corn Oil
Forwards8,788 (12)MmBTUNatural Gas
(1)Notional volume of exchange-traded futures and options are presented on a net long and (short) position basis. Options are presented on a delta-adjusted basis.
(2)Notional volume of non-exchange-traded forward physical contracts are presented on a gross long and (short) position basis, including both fixed-price and basis contracts, for which only the basis portion of the contract price is fixed.
(3)Notional volume of exchange-traded futures used for cash flow hedges.
(4)Notional volume of exchange-traded futures used for fair value hedges.
Energy trading contracts that do not involve physical delivery are presented net in revenues on the consolidated statements of operations. Included in revenues are net gains of $0.5 million and net gains of $2.3 million for the three and six months ended June 30, 2024, respectively, and net gains of $0.4 million and $4.2 million for the three and six months ended June 30, 2023, respectively, on energy trading contracts.