v3.26.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments DERIVATIVE FINANCIAL INSTRUMENTS
At March 31, 2026, the company’s consolidated balance sheet reflected unrealized losses of $14.1 million, net of tax, in accumulated other comprehensive loss. The company expects these items will be reclassified as operating income (loss) over the next 12 months as a result of hedged transactions that are forecasted to occur. The amount realized in operating income (loss) will differ as commodity prices change.
Fair Values of Derivative Instruments
The fair values of the company’s derivative financial instruments and the line items on the consolidated balance sheets where they are reported are as follows (in thousands):
Asset Derivatives'
Fair Value		Liability Derivatives'
Fair Value
March 31,
2026		December 31,
2025		March 31,
2026		December 31,
2025
Derivative financial instruments - forwards$10,279 $6,927 
(2)
$8,318 
(1)
$7,901 
Other assets32 — — — 
Other liabilities— — — 1 
Total$10,311 $6,927 $8,318 $7,902 
(1)At March 31, 2026, derivative financial instruments, as reflected on the balance sheet, includes net unrealized losses on exchange-traded futures and options contracts of $27.0 million, which include $15.4 million of net unrealized losses on derivative financial instruments designated as cash flow hedging instruments, and $0.5 million of net unrealized losses on derivative financial instruments designated as fair value hedging instruments, and the balance representing economic hedges.
(2)At December 31, 2025, derivative financial instruments, as reflected on the balance sheet, includes net unrealized gains on exchange-traded futures and options contracts of $4.6 million, which include $0.6 million of net unrealized gains on derivative financial instruments designated as cash flow hedging instruments, $1.1 million of net unrealized gains on derivative financial instruments designated as fair value hedging instruments, and the balance representing economic hedges.
Refer to Note 3 - Fair Value Disclosures, which contains fair value information related to derivative financial instruments.
Effect of Derivative Instruments on Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss
The gains or losses recognized in income and other comprehensive income related to the company’s derivative financial instruments and the line items on the consolidated financial statements where they are reported are as follows (in thousands):
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Location of Gain (Loss) Reclassified from Accumulated Other
Comprehensive Income into Income		Three Months Ended
March 31,
20262025
Revenues$390 $(25)
Cost of goods sold4,865 (24)
Net income (loss) recognized in income (loss) before income taxes$5,255 $(49)
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
Gain (Loss) Recognized in Other Comprehensive Income on
Derivatives		Three Months Ended
March 31,
20262025
Commodity contracts$(12,829)$(3,032)
A portion of the company’s derivative instruments are considered economic hedges and as such are not designated as hedging instruments. The company uses exchange-traded futures and options contracts to manage its net position of product inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations. Derivatives, including exchange-traded contracts and forward commodity purchase or sale contracts, and inventories of certain agricultural products, which include amounts acquired under deferred pricing contracts, are stated at fair value. Fair value estimates are based on exchange-quoted prices, adjusted as appropriate for regional location basis value, which represent differences in local markets including transportation as well as quality or grade differences.
Amount of Gain (Loss)
Recognized in Income on Derivatives
Derivatives Not Designated as
Hedging Instruments		Location of Gain (Loss) Recognized in Income
 on Derivatives		Three Months Ended
March 31,
20262025
Exchange-traded futures and optionsRevenues$(13,279)$2,892 
ForwardsRevenues3,522 2,332 
Exchange-traded futures and optionsCost of goods sold(10,991)(1,373)
ForwardsCost of goods sold2,178 (6,982)
Net gain (loss) recognized in income (loss) before income taxes$(18,570)$(3,131)
The following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for the fair value hedged items (in thousands):
March 31, 2026December 31, 2025
Line Item in the Consolidated Balance Sheet in Which the Hedged Item is IncludedCarrying Amount of the Hedged AssetsCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged AssetsCarrying Amount of the Hedged AssetsCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
Inventories$12,601 $1,015 $24,736 $(8,938)
Effect of Cash Flow and Fair Value Hedge Accounting on the Statements of Operations (in thousands):
Location and Amount of Gain (Loss) Recognized in Income on Cash Flow and Fair Value Hedging Relationships for the Three Months Ended March 31,
20262025
RevenueCost of
Goods Sold		RevenueCost of
Goods Sold
Gain (loss) on cash flow hedging relationships
Commodity contracts
Amount of gain (loss) on exchange-traded futures reclassified from accumulated other comprehensive income into income$390 $4,865 $(25)$(24)
Gain (loss) on fair value hedging relationships
Commodity contracts
Fair-value hedged inventories— (385)— 1,138 
Exchange-traded futures designated as hedging instruments— 1,106 — 231 
Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow or fair value hedges are recorded$390 $5,586 $(25)$1,345 
The notional volume of open commodity derivative positions as of March 31, 2026 are as follows (in thousands):
Exchange-Traded (1)
Non-Exchange-Traded (2)
Derivative
Instruments		Net Long &
(Short)		Long(Short)Unit of
Measure		Commodity
Futures(31,775)BushelsCorn
Futures32,920 
(3)
BushelsCorn
Futures(2,845)
(4)
BushelsCorn
Futures(39,480)GallonsEthanol
Futures(97,020)
(3)
GallonsEthanol
Futures(1,023)MmBTUNatural Gas
Futures3,210 
(3)
MmBTUNatural Gas
Futures(30)
(4)
MmBTUNatural Gas
Forwards45,693 — BushelsCorn
Forwards15,967 (196,477)GallonsEthanol
Forwards3 (186)TonsDistillers Grains
Forwards— (48,089)PoundsRenewable Corn Oil
Forwards12,937 (20)MmBTUNatural Gas
(1)Notional volume of exchange-traded futures and options are presented on a net long and (short) position basis. Options are presented on a delta-adjusted basis.
(2)Notional volume of non-exchange-traded forward physical contracts are presented on a gross long and (short) position basis, including both fixed-price and basis contracts, for which only the basis portion of the contract price is fixed.
(3)Notional volume of exchange-traded futures used for cash flow hedges.
(4)Notional volume of exchange-traded futures used for fair value hedges.
Energy trading contracts that do not involve physical delivery are presented net in revenues on the consolidated statements of operations. Included in revenues are net gains of $5.6 million and $2.6 million for the three months ended March 31, 2026 and 2025, respectively, on energy trading contracts.