Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 73

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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ivative Financial Instruments 

The Company is exposed to various market
risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility
of these natural business exposures, the Company enters into commodity agreements (exchange-traded futures contracts and swaps)
and forward purchase (corn) and sale (ethanol, distillers grains and distillers corn oil) contracts. The Company does not purchase
or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative
financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques. The
changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not
use hedge accounting.

18

The following table provides information
about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal
purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Balance Sheets in which the
fair values are reflected (in thousands):

    Asset Derivatives Fair Value  
    Liability Derivatives Fair Value 

    October 31, 2025  
    January 31, 2025  
    October 31, 2025  
    January 31, 2025 

    Forward purchase contracts (1) 
    $517  
    $1,253  
    $615  
    $378 

    Cash collateral balance (2) 
    $1,114  
    $2,523  
    $-  
    $- 

    Commodity futures (3) 
     (372)  
     (1,291)  
     -  
     - 

    Net position with broker 
    $742  
    $1,232  
    $-  
    $- 

    Total 
    $1,259  
    $2,485  
    $615  
    $378 

   (1) Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts are for purchases of approximately 8.6 million bushels and 16.8 million bushels of corn at October 31, 2025 and January 31, 2025, respectively. 
      
     Forward purchase contracts liabilities are included in “Accrued