Table:
|  | Fair Value Impact |  |
| --- | --- | --- |
| In Millions | Average During the Fiscal Year Ended May 26, 2019 | Average During the Fiscal Year Ended May 27, 2018 |
| Processing Activities |  |  |
| Energy commodities | $0.4 | $0.2 |
| Agriculture commodities | 0.4 | 0.4 |
| Other commodities | 0.1 | — |
| Foreign exchange | 0.7 | 0.7 |
Paragraphs:
Value-at-Risk (VaR)
We employ various tools to monitor our derivative risk, including value-at-risk ("VaR") models. We perform simulations using historical data to estimate potential losses in the fair value of current derivative positions. We use price and volatility information for the prior 90 days in the calculation of VaR that is used to monitor our daily risk. The purpose of this measurement 45 is to provide a single view of the potential risk of loss associated with derivative positions at a given point in time based on recent changes in market prices. Our model uses a 95% confidence level. Accordingly, in any given one-day time period, losses greater than the amounts included in the table below are expected to occur only 5% of the time. We include commodity swaps, futures, and options and foreign exchange forwards, swaps, and options in this calculation. The following table provides an overview of our average daily VaR for our energy, agriculture, and foreign exchange positions for fiscal 2019 and 2018.
Question:
How does the company estimate potential losses in the fair value of current derivative positions?
Answer: perform simulations using historical data