Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 18

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 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.

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 

    July 31, 
2025  
    January 31,
    2025  
    July 31, 
2025  
    January 31, 
2025 

    Forward purchase contracts (1) 
    $9  
    $1,253  
    $1,885  
    $378 

    Cash collateral balance (2) 
    $506  
    $2,523  
    $-  
    $- 
  
    Commodity futures (3) 
     489  
     (1,291) 
     -  
     - 
  
    Net position with broker 
    $995  
    $1,232  
    $-  
    $- 

    Total 
    $1,004  
    $2,485  
    $1,885  
    $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 800,000 bushels and 16.8 million bushels of corn at July 31, 2025 and January 31, 2025, respectively.             Forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts are for purchases of approximately 14.2 million bushels and 7.6 million bushels of corn at July 31, 2025 and January 31, 2025, respectively.