Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 156

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 3
Chunk 156
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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 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 Price

    Ethanol
     
    300,000
     
    Gallons
     
    $ 50,524

    Corn
     
    103,800
     
    Bushels
     
    $ 38,598

    Distillers Grains
           737
     
    Tons
     
    $   8,848

    Distillers Corn Oil 
       90,000
     
    Pounds
     
    $   4,367

    Natural Gas
         7,400
     
    MmBtu
     
    $   2,078

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