The majority of the Company’s derivative instruments have not been designated as hedging instruments. The Company uses exchange-traded futures and exchange-traded and OTC options contracts to manage its net position of merchandisable agricultural product inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations in agricultural commodities and foreign currencies. The Company also uses exchange-traded futures and exchange-traded and OTC options contracts as components of merchandising strategies designed to enhance margins. The results of these strategies can be significantly impacted by factors such as the correlation between the value of exchange-traded commodities futures contracts and the value of the underlying commodities, counterparty contract defaults, and volatility of freight markets. Derivatives, including exchange-traded contracts and physical purchase or sale contracts, and inventories of certain merchandisable agricultural product inventories, which include amounts acquired under deferred pricing contracts, are stated at market value. Inventory is not a derivative and therefore fair values of and changes in fair values of inventories are not included in the tables below.


	September 30, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
	(In millions)

Foreign Currency Contracts	$	328	$	139	$	283	$	270

Commodity Contracts	1,448		1,607		2,764		2,034
Debt Conversion Option	—		17		—		34
Total	$	1,776	$	1,763	$	3,047	$	2,338


					Other expense (income) - net
			Cost of				Interest
(In millions)	Revenues		products sold				expense
Three Months Ended September 30, 2021
Consolidated Statement of Earnings	$	20,340	$	19,014	$	20	$	61

Pre-tax gains (losses) on:





Foreign Currency Contracts	$	13	$	(92)	$	62	$	—
Commodity Contracts	—		214		—		—
Debt Conversion Option	—		—		—		7
Total gain (loss) recognized in earnings	$	13	$	122	$	62	$	7	$	204

Three Months Ended September 30, 2020
Consolidated Statement of Earnings	$	15,126	$	14,084	$	282	$	100

Pre-tax gains (losses) on:
Foreign Currency Contracts	$	8	$	(77)	$	(85)	$	—
Commodity Contracts	—		(272)		—		—
Debt Conversion Option	—		—		—		(15)
Total gain (loss) recognized in earnings	$	8	$	(349)	$	(85)	$	(15)	$	(441)


					Other expense (income) - net
			Cost of				Interest
(In millions)	Revenues		products sold				expense
Nine Months Ended September 30, 2021
Consolidated Statement of Earnings	$	62,159	$	57,822	$	36	$	188

Pre-tax gains (losses) on:
Foreign Currency Contracts	$	—	$	(140)	$	137	$	—
Commodity Contracts	—		(1,241)		—		—
Debt Conversion Option	—		—		—		17
Total gain (loss) recognized in earnings	$	—	$	(1,381)	$	137	$	17	$	(1,227)

Nine Months Ended September 30, 2020
Consolidated Statement of Earnings	$	46,377	$	43,276	$	202	$	270

Pre-tax gains (losses) on:
Foreign Currency Contracts	$	54	$	(738)	$	(13)	$	—
Commodity Contracts	—		321		55		—
Debt Conversion Option	—		—		—		(15)
Total gain (loss) recognized in earnings	$	54	$	(417)	$	42	$	(15)	$	(336)

Changes in the market value of inventories of certain merchandisable agricultural product inventories, forward cash purchase and sales contracts, exchange-traded futures and exchange-traded and OTC options contracts are recognized in earnings immediately as a component of cost of products sold.

The Company uses cross-currency swaps and foreign exchange forwards designated as net investment hedges to protect the Company’s investment in a foreign subsidiary against changes in foreign currency exchange rates. The Company executed USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $1.3 billion as of September 30, 2021 and December 31, 2020, and foreign exchange forwards with an aggregate notional amount of $1.7 billion and $1.8 billion as of September 30, 2021 and December 31, 2020, respectively.

As of September 30, 2021 and December 31, 2020, the Company had after-tax losses of $82 million and $202 million in AOCI, respectively, related to foreign exchange gains and losses from these net investment hedge transactions. The amount is deferred in AOCI until the underlying investment is divested.

For derivative instruments that are designated and qualify as highly-effective cash flow hedges (i.e., hedging the exposure to variability in expected future cash flow that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of AOCI and as an operating activity in the statement of cash flows and reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings. Hedge components excluded from the assessment of effectiveness and gains and losses related to discontinued hedges are recognized in the consolidated statement of earnings during the current period.

The Company’s structured trade finance programs use interest rate swaps designated as cash flow hedges to hedge the forecasted interest payments on certain letters of credit from banks. The terms of the interest rate swaps match the terms of the forecasted interest payments. The deferred gains and losses are recognized in revenues over the period in which the related interest payments are paid to the banks. The amounts are recorded in revenues as the underlying commodity trade flows are also recorded in revenues. As of September 30, 2021 and December 31, 2020, the Company had interest rate swaps maturing on various dates with aggregate notional amounts of $0.2 billion and $3.3 billion, respectively.

The Company also uses swap locks designated as cash flow hedges to hedge the changes in the forecasted interest payments due to changes in the benchmark rate leading up to future bond issuance dates. The terms of the swap locks match the terms of the forecasted interest payments. The deferred gains and losses will be recognized in interest expense over the period in which the related interest payments will be paid. As of September 30, 2021 and December 31, 2020, the Company executed swap locks maturing on various dates with an aggregate notional amount of $400 million and $550 million, respectively.

As of September 30, 2021 and December 31, 2020, the Company had after-tax gains of $44 million and $31 million in AOCI, respectively, related to the interest rate swaps and the swap locks. The Company expects to recognize this amount in its consolidated statements of earnings during the life of the debt instruments.

For each of the hedge programs described below, the derivatives are designated as cash flow hedges. The changes in the market value of such derivative contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in price movements of the hedged item. Once the hedged item is recognized in earnings, the gains and losses arising from the hedge are reclassified from AOCI to either revenues or cost of products sold, as applicable. As of September 30, 2021 and December 31, 2020, the Company had after-tax gains of $371 million and $164 million in AOCI, respectively, related to gains and losses from these programs. The Company expects to recognize $371 million of the September 30, 2021 after-tax gains in its consolidated statements of earnings during the next 12 months.

The Company uses futures or options contracts to hedge the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The objective of this hedging program is to reduce the variability of cash flows associated with the Company’s forecasted purchases of corn. The Company’s corn processing plants normally grind approximately 72 million bushels of corn per month. From April 2020 to March 2021, the Company temporarily idled dry mill assets and was grinding approximately 56 million bushels of corn per month. In April 2021, the Company resumed ethanol production at its two corn dry mill facilities. During the past 12 months, the Company hedged between 23% and 34% of its monthly grind. At September 30, 2021, the Company had designated hedges representing between 3% and 31% of its anticipated monthly grind of corn for the next 12 months.

The Company, from time to time, also uses futures, options, and swaps to hedge the sales price of certain ethanol sales contracts. The Company has established hedging programs for ethanol sales contracts that are indexed to unleaded gasoline prices and to various exchange-traded ethanol contracts. The objective of these hedging programs is to reduce the variability of cash flows associated with the Company’s sales of ethanol. During the past 12 months and as of September 30, 2021, the Company had no hedges related to ethanol sales under these programs.

The Company uses futures and options contracts to hedge the purchase price of the anticipated volumes of soybeans to be purchased and processed in a future month for certain of its U.S. soybean crush facilities, subject to certain program limits. The Company also uses futures or options contracts to hedge the sales prices of the anticipated soybean meal and soybean oil sales proportionate to the soybean crushing process at these facilities, subject to certain program limits. During the past 12 months, the Company hedged between 27% and 100% of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities. At September 30, 2021, the Company had designated hedges representing between 0% and 100% of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities over the next 12 months.

The Company uses futures and OTC swaps to hedge the purchase price of anticipated volumes of natural gas consumption in a future month for certain of its facilities in North America and Europe, subject to certain program limits. During the past 12 months, the Company hedged between 20% and 94% of the anticipated monthly natural gas consumption at the designated facilities. At September 30, 2021, the Company had designated hedges representing between 10% and 96% of the anticipated monthly natural gas consumption over the next 12 months.


			Cost of products sold
(In millions)	Revenues
Three Months Ended September 30, 2021
Consolidated Statement of Earnings	$	20,340	$	19,014

Effective amounts recognized in earnings
Pre-tax gains (losses) on:

Commodity Contracts	$	—	$	122

Total gain (loss) recognized in earnings	$	—	$	122	$	122

Three Months Ended September 30, 2020
Consolidated Statement of Earnings	$	15,126	$	14,084

Effective amounts recognized in earnings
Pre-tax gains (losses) on:

Commodity Contracts	$	1	$	79
Interest Contracts	(14)		—



Total gain (loss) recognized in earnings	$	(13)	$	79	$	66


			Cost of products sold		Interest expense
(In millions)	Revenues
Nine Months Ended September 30, 2021
Consolidated Statement of Earnings	$	62,159	$	57,822	$	188

Effective amounts recognized in earnings
Pre-tax gains (losses) on:

Commodity Contracts	$	—	$	450	$	—
Interest Contracts	(15)		—		—
Total gain (loss) recognized in earnings	$	(15)	$	450	$	—	$	435

Nine Months Ended September 30, 2020
Consolidated Statement of Earnings	$	46,377	$	43,276	$	270

Effective amounts recognized in earnings
Pre-tax gains (losses) on:

Commodity Contracts	$	9	$	19	$	—
Interest Contracts	(55)		—		(8)



Total gain (loss) recognized in earnings	$	(46)	$	19	$	(8)	$	(35)

The Company has designated €1.8 billion and €1.5 billion of its outstanding long-term debt and commercial paper borrowings at September 30, 2021 and December 31, 2020, respectively, as hedges of its net investment in a foreign subsidiary. As of September 30, 2021 and December 31, 2020, the Company had after-tax gains of $11 million and losses of $87 million in AOCI, respectively, related to foreign exchange gains and losses from these net investment hedge transactions. The amount is deferred in AOCI until the underlying investment is divested.