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 forward commodity purchase or sale contracts, and inventories of certain merchandisable agricultural products, which include amounts acquired under deferred pricing contracts, are stated at fair value or 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.


	June 30, 2022				December 31, 2021
	Assets		Liabilities		Assets		Liabilities
	(In millions)

Foreign Currency Contracts	$	368	$	223	$	217	$	116
Interest Rate Contracts	3		—		—		—
Commodity Contracts	1,781		1,902		1,276		1,759
Debt Conversion Option	—		11		—		15
Total	$	2,152	$	2,136	$	1,493	$	1,890


					Other expense (income) - net
			Cost of				Interest
(In millions)	Revenues		products sold				expense
Three Months Ended June 30, 2022
Consolidated Statement of Earnings	$	27,284	$	25,184	$	(83)	$	73

Pre-tax gains (losses) on:





Foreign Currency Contracts	$	13	$	(95)	$	240	$	—
Commodity Contracts	—		1,062		—		—
Debt Conversion Option	—		—		—		19
Total gain (loss) recognized in earnings	$	13	$	967	$	240	$	19	$	1,239

Three Months Ended June 30, 2021
Consolidated Statement of Earnings	$	22,926	$	21,463	$	49	$	40

Pre-tax gains (losses) on:
Foreign Currency Contracts	$	(43)	$	214	$	(45)	$	—
Commodity Contracts	—		(673)		—		—
Debt Conversion Option	—		—		—		30
Total gain (loss) recognized in earnings	$	(43)	$	(459)	$	(45)	$	30	$	(517)


					Other expense (income) - net
			Cost of				Interest
(In millions)	Revenues		products sold				expense
Six Months Ended June 30, 2022
Consolidated Statement of Earnings	$	50,934	$	46,937	$	(116)	$	165

Pre-tax gains (losses) on:
Foreign Currency Contracts	$	(25)	$	348	$	263	$	—
Commodity Contracts	—		(39)		—		—
Debt Conversion Option	—		—		—		4
Total gain (loss) recognized in earnings	$	(25)	$	309	$	263	$	4	$	551

Six Months Ended June 30, 2021
Consolidated Statement of Earnings	$	41,819	$	38,808	$	16	$	127

Pre-tax gains (losses) on:
Foreign Currency Contracts	$	(13)	$	(48)	$	75	$	—
Commodity Contracts	—		(1,455)		—		—
Debt Conversion Option	—		—		—		10
Total gain (loss) recognized in earnings	$	(13)	$	(1,503)	$	75	$	10	$	(1,431)

Changes in the market value of inventories of certain merchandisable agricultural commodities, 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 $0.8 billion and $1.2 billion as of June 30, 2022 and December 31, 2021, respectively, and foreign exchange forwards with an aggregate notional amount of $2.5 billion and $2.6 billion as of June 30, 2022 and December 31, 2021, respectively.

As of June 30, 2022 and December 31, 2021, the Company had after-tax gains of $125 million and after-tax losses of $44 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 is reclassified into earnings in the same line item affected by the hedged transaction 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 related results are also recorded in revenues. As of June 30, 2022 and December 31, 2021, the Company had interest rate swaps maturing on various dates with aggregate notional amounts of $0.8 billion and $1.0 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 June 30, 2022 and December 31, 2021, the Company executed swap locks maturing on various dates with an aggregate notional amount of $400 million.

As of June 30, 2022 and December 31, 2021, the Company had after-tax gains of $70 million and $35 million in AOCI, respectively, related to the interest rate swaps and swap locks. The Company expects to recognize amounts deferred in AOCI in its consolidated statement 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 June 30, 2022 and December 31, 2021, the Company had after-tax gains of $282 million and $161 million in AOCI, respectively, related to gains and losses from these programs. The Company expects to recognize $282 million of the June 30, 2022 after-tax gains in its consolidated statement 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 65 million bushels of corn per month. During the past 12 months, the Company hedged between 17% and 33% of its monthly grind. At June 30, 2022, the Company had designated hedges representing between 1% and 32% 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 June 30, 2022, 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 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 57% and 100% of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities. At June 30, 2022, 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 0% and 121% of the anticipated monthly natural gas consumption at the designated facilities. At June 30, 2022, the Company had designated hedges representing between 0% and 111% of the anticipated monthly natural gas consumption over the next 12 months.


			Cost of products sold
(In millions)	Revenues
Three Months Ended June 30, 2022
Consolidated Statement of Earnings	$	27,284	$	25,184

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

Commodity Contracts	$	—	$	150

Total gain (loss) recognized in earnings	$	—	$	150	$	150

Three Months Ended June 30, 2021
Consolidated Statement of Earnings	$	22,926	$	21,463

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

Commodity Contracts	$	—	$	239
Interest Contracts	(1)		—



Total gain (loss) recognized in earnings	$	(1)	$	239	$	238


			Cost of products sold
(In millions)	Revenues
Six Months Ended June 30, 2022
Consolidated Statement of Earnings	$	50,934	$	46,937

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

Commodity Contracts	$	—	$	248

Total gain (loss) recognized in earnings	$	—	$	248	$	248

Six Months Ended June 30, 2021
Consolidated Statement of Earnings	$	41,819	$	38,808

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

Commodity Contracts	$	—	$	328
Interest Contracts	(15)		—



Total gain (loss) recognized in earnings	$	(15)	$	328	$	313

The Company has designated €1.8 billion of its outstanding long-term debt and commercial paper borrowings at June 30, 2022 and December 31, 2021 as hedges of its net investment in a foreign subsidiary. As of June 30, 2022 and December 31, 2021, the Company had after-tax gains of $227 million and $55 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.