Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 105

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 other variations thereon or comparable terminology. Readers are cautioned
that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in
such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s
filings with the Securities and Exchange Commission and include among other things: the impact of legislative and regulatory changes,
the price volatility and availability of corn, distillers grains, ethanol, distillers corn oil, gasoline and natural gas, commodity
market risk, ethanol plants operating efficiently and according to forecasts and projections, logistical interruptions, success
in permitting and developing the planned carbon sequestration facility near the One Earth Energy ethanol plant, changes in the
international, national or regional economies, the impact of inflation, the ability to attract employees, weather, results of income
tax audits, changes in income tax laws or regulations, the impact of U.S. foreign trade policy and tariffs, changes in foreign
currency exchange rates, the effects of terrorism or acts of war and the effect of pandemics on the Company’s business operations,
including impacts on supplies, demand, personnel and other factors. The Company does not intend to update publicly any forward-looking
statements except as required by law. Other factors that could cause actual results to differ materially from those in the forward-looking
statements are set forth in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025 (File
No. 001-09097).

38

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 July 31, 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