Risk Management (Tables)

6 Months Ended

Mar. 31, 2022

Derivatives not designated as hedging instruments are as follows:


	March 31, 2022		September 30, 2021
Derivative assets - corn contracts	$	4,049,688	$	524,500

Derivative assets - ethanol contracts	—		104,160
Derivative liabilities - corn contracts	(4,734,725)		(68,900)
Derivative liabilities - ethanol contracts	(430,979)		(395,640)
Due from broker	3,497,279		1,293,229
Total	$	2,381,263	$	1,457,349

The effects on operating income (loss) from derivative activities for three and six months ended March 31, 2022 and 2021 are as follows:


	Three Months Ended				Six Months Ended
	March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
Gains (losses) in revenues due to derivatives related to ethanol sales:
Realized (loss)	$	(1,947,674)	$	(17,925)	$	(11,489,194)	$	(160,981)
Unrealized gain (loss)	2,134,568		(5,849)		(139,499)		60,260
Total effect on revenues	$	186,894	$	(23,774)	$	(11,628,693)	$	(100,721)

Gains (losses) in cost of goods sold due to derivatives related to corn costs:
Realized gain (loss)	$	1,843,099	$	(1,814,918)	$	2,178,567	$	(2,224,191)
Unrealized gain (loss)	(1,744,188)		974,538		(1,140,638)		246,788
Total effect on cost of goods sold	98,911		(840,380)		1,037,929		(1,977,403)
Total gain (loss) due to derivative activities	$	285,805	$	(864,154)	$	(10,590,764)	$	(2,078,124)

Lincolnway Energy, LLC 10-Q