Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 123

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 3
Chunk 123
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Item 3. Quantitative and Qualitative Disclosures About
Market Risk

We are exposed to the impact of market
fluctuations associated with commodity prices as discussed below.

We manage a portion of our risk with respect
to the volatility of commodity prices inherent in the ethanol industry by using forward fixed-price purchase and fixed-price sale
contracts and exchange traded commodity futures contracts. Our remaining exposure to market risk, which includes the impact of
our risk management activities resulting from our fixed-price purchase and sale contracts and derivatives, is based on the estimated
effect on pre-tax income for the twelve months following April 30, 2025 is as follows, assuming normal operating capacity (amounts
in thousands): 

    Commodity 
    Estimated
    Total Volume for 12 Months  
    Unit of
    Measure  
    Decrease
    in Pre-tax Income From a 10% Adverse
    Change in Price 

    Ethanol 
     295,000  
     Gallons  
    $51,422 

    Corn 
     102,100  
     Bushels  
    $42,626 

    Distillers Grains 
     718  
     Tons  
    $8,588 

    Distillers Corn Oil 
     85,000  
     Pounds  
    $3,934 

    Natural Gas 
     7,400  
     MmBtu  
    $2,329 

Item 4. Controls and Procedures

Our management evaluated, with the participation
of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures, as of
the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us
in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated
to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure.

There were no changes in our internal control
over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely
to materially affect, our internal control over