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Derivative Financial Instruments and Hedging Activities
 9 Months Ended
May 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Hedging Activities Disclosure Derivative Financial Instruments and Hedging Activities
    We enter into various derivative instruments to manage our exposure to movements primarily associated with agricultural and energy commodity prices and, to a lesser degree, foreign currency exchange rates and interest rates. Except for certain cash-settled swaps related to future crude oil purchases and refined product sales, which are accounted for as cash flow hedges, our derivative instruments represent economic hedges of price risk for which hedge accounting under ASC Topic 815 is not applied. Rather, the derivative instruments are recorded on our Condensed Consolidated Balance Sheets at fair value with changes in fair value being recorded directly to earnings, primarily within cost of goods sold in our Condensed Consolidated Statements of Operations. See Note 12, Fair Value Measurements, for additional information. The majority of our exchange-traded agricultural commodity futures are settled daily through CHS Hedging, LLC, our wholly-owned FCM.

Derivatives Not Designated as Hedging Instruments

The following tables present the gross fair values of derivative assets, derivative liabilities and related margin deposits (cash collateral) recorded on our Condensed Consolidated Balance Sheets, along with related amounts permitted to be offset in accordance with U.S. GAAP. Although we have certain netting arrangements for our exchange-traded futures and options contracts and certain over-the-counter ("OTC") contracts, we have elected to report our derivative instruments on a gross basis on our Condensed Consolidated Balance Sheets under ASC Topic 210-20, Balance Sheet-Offsetting.
May 31, 2025
Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting
Gross Amount RecognizedCash CollateralDerivative InstrumentsNet Amount
Derivative assets(Dollars in thousands)
Commodity derivatives$123,756 $— $4,774 $118,982 
Foreign exchange derivatives35,355 — 6,956 28,399 
Total$159,111 $— $11,730 $147,381 
Derivative liabilities
Commodity derivatives$164,410 $482 $4,774 $159,154 
Foreign exchange derivatives7,627 — 6,956 671 
Total$172,037 $482 $11,730 $159,825 

August 31, 2024
Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting
Gross Amount RecognizedCash CollateralDerivative InstrumentsNet Amount
Derivative assets(Dollars in thousands)
Commodity derivatives$165,709 $— $2,522 $163,187 
Foreign exchange derivatives9,029 — 7,100 1,929 
Total$174,738 $— $9,622 $165,116 
Derivative liabilities
Commodity derivatives$221,803 $1,601 $2,522 $217,680 
Foreign exchange derivatives24,476 — 7,100 17,376 
Total$246,279 $1,601 $9,622 $235,056 

    Derivative assets and liabilities with maturities of less than 12 months are recorded in other current assets and other current liabilities, respectively, on our Condensed Consolidated Balance Sheets. Derivative assets and liabilities with maturities greater than 12 months are recorded in other assets and other liabilities, respectively, on our Condensed Consolidated Balance Sheets. The amount of long-term derivative assets recorded on our Condensed Consolidated Balance Sheets as of May 31, 2025, and August 31, 2024, was $4.8 million and $2.9 million, respectively. The amount of long-term derivative liabilities recorded on our Condensed Consolidated Balance Sheets as of May 31, 2025, and August 31, 2024, was $1.3 million and $6.0 million, respectively.
    The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2025 and 2024:
Three Months Ended May 31,Nine Months Ended May 31,
Location of Gain (Loss)2025202420252024
(Dollars in thousands)
Commodity derivativesCost of goods sold$(32,997)$35,591 $16,547 $74,478 
Foreign exchange derivativesCost of goods sold33,703 (19,803)37,713 (25,411)
Foreign exchange derivativesMarketing, general and administrative expenses2,927 (1,555)2,859 (1,584)
Total$3,633 $14,233 $57,119 $47,483 

Commodity Contracts
    
    As of May 31, 2025, and August 31, 2024, we had outstanding commodity futures and options contracts that were used as economic hedges, as well as fixed-price forward contracts related to physical purchases and sales of commodities. The table below presents the notional volumes for all outstanding commodity contracts:
 May 31, 2025August 31, 2024
LongShortLongShort
 (Units in thousands)
Grain and oilseed (bushels)411,548 688,875 385,426517,883
Energy products (barrels)9,790 6,387 8,4385,014
Processed grain and oilseed (tons)682 2,604 3,6006,193
Crop nutrients (tons)16 74 7314
Natural gas (metric million Btu)— — 2,350500

Foreign Exchange Contracts

    We conduct a substantial portion of our business in U.S. dollars, but we are exposed to risks relating to foreign currency fluctuations, primarily due to global grain marketing transactions in South America, the Asia Pacific region and Europe and purchases of products from Canada. We use foreign currency derivative instruments to mitigate the impact of exchange rate fluctuations. Although CHS has some risk exposure relating to foreign currency transactions, a larger impact with exchange rate fluctuations is the ability of foreign buyers to purchase U.S. agricultural products and the competitiveness of U.S. agricultural products compared to the same products offered by alternative sources of world supply. The notional amount of our foreign exchange derivative contracts was $2.3 billion and $1.5 billion as of May 31, 2025, and August 31, 2024, respectively.

Derivatives Designated as Cash Flow Hedging Strategies

    Certain pay-fixed, receive-variable, cash-settled swaps are designated as cash flow hedges of future crude oil purchases in our Energy segment. We also designate certain pay-variable, receive-fixed, cash-settled swaps as cash flow hedges of future refined energy product sales. These hedging instruments and the related hedged items are exposed to significant market price risk and potential volatility. As part of our risk management strategy, we look to hedge a portion of our expected future crude oil needs and the resulting refined product output based on prevailing futures prices, management's expectations about future commodity price changes and our risk appetite. We may also elect to dedesignate certain derivative instruments previously designated as cash flow hedges as part of our risk management strategy. Amounts recorded in other comprehensive income for these dedesignated derivative instruments remain in other comprehensive income and are recognized in earnings in the period in which the underlying transactions affect earnings. The aggregate notional amounts of cash flow hedges were 6.5 million and 5.5 million barrels as of May 31, 2025, and August 31, 2024, respectively.

    The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the locations on our Condensed Consolidated Balance Sheets in which they are recorded:
Derivative AssetsDerivative Liabilities
Balance Sheet LocationMay 31,
2025		August 31,
2024		Balance Sheet LocationMay 31,
2025		August 31,
2024
(Dollars in thousands)(Dollars in thousands)
Other current assets$8,152 $5,226 Other current liabilities$4,719 $2,781 
    The following table presents the pretax gains (losses) recorded in other comprehensive income relating to cash flow hedges for the three and nine months ended May 31, 2025 and 2024:
Three Months Ended May 31,Nine Months Ended May 31,
2025202420252024
 (Dollars in thousands)
Commodity derivatives$(841)$(674)$988 $948 

    The following table presents the pretax gains relating to our existing cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2025 and 2024:
Three Months Ended May 31,Nine Months Ended May 31,
Location of Gain2025202420252024
  (Dollars in thousands)
Commodity derivativesCost of goods sold$2,485 $3,403 $10,582 $14,070