Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Feb. 28, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Reconciliation of gross and net fair values of assets and liabilities subject to offsetting arrangements

	February 28, 2021
			Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting
	Gross Amount Recognized		Cash Collateral		Derivative Instruments		Net Amount
	(Dollars in thousands)
Derivative Assets
Commodity derivatives	$	980,141	$	—	$	18,849	$	961,292
Foreign exchange derivatives	7,221		—		5,891		1,330
Embedded derivative asset	15,865		—		—		15,865
Total	$	1,003,227	$	—	$	24,740	$	978,487
Derivative Liabilities
Commodity derivatives	$	515,002	$	1,893	$	19,964	$	493,145
Foreign exchange derivatives	64,669		—		5,891		58,778
Total	$	579,671	$	1,893	$	25,855	$	551,923

	August 31, 2020
			Amounts Not Offset on Condensed Consolidated Balance Sheet but Eligible for Offsetting
	Gross Amount Recognized		Cash Collateral		Derivative Instruments		Net Amount
	(Dollars in thousands)
Derivative Assets
Commodity derivatives	$	327,493	$	—	$	2,980	$	324,513
Foreign exchange derivatives	11,809		—		9,385		2,424
Embedded derivative asset	18,998		—		—		18,998
Total	$	358,300	$	—	$	12,365	$	345,935
Derivative Liabilities
Commodity derivatives	$	343,343	$	956	$	5,578	$	336,809
Foreign exchange derivatives	69,466		—		9,385		60,081
Total	$	412,809	$	956	$	14,963	$	396,890

Derivatives Not Designated as Hedging Instruments

The majority of our derivative instruments have not been designated as hedging instruments. The following table sets forth the pretax gains (losses) on derivatives not accounted for as hedging instruments that have been included in our Condensed Consolidated Statements of Operations for the three and six months ended February 28, 2021, and February 29, 2020.

		Three Months Ended				Six Months Ended
	Location of Gain (Loss)	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
		(Dollars in thousands)
Commodity derivatives	Cost of goods sold	$	(191,284)	$	100,268	$	(392,646)	$	142,942
Foreign exchange derivatives	Cost of goods sold	(30,881)		(37,148)		(8,240)		(47,309)
Foreign exchange derivatives	Marketing, general and administrative expenses	(435)		195		173		1,938
Embedded derivative	Other income	302		348		1,866		1,917
Total		$	(222,298)	$	63,663	$	(398,847)	$	99,488

Schedule of Derivative Instruments, Purchase and Sales Contracts

all outstanding commodity contracts.

	February 28, 2021		August 31, 2020
	Long	Short	Long	Short
	(Units in thousands)
Grain and oilseed (bushels)	851,400	1,181,716	664,673	892,303
Energy products (barrels)	12,560	11,779	10,028	6,570
Processed grain and oilseed (tons)	609	2,320	657	3,304
Crop nutrients (tons)	2	177	74	127
Ocean freight (metric tons)	370	—	1,140	95
Natural gas (MMBtu)	—	200	—	—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value of our commodity derivative instruments designated as cash flow hedges and the line items on our Condensed Consolidated Balance Sheets in which they are recorded.

	Derivative Assets					Derivative Liabilities
Balance Sheet Location	February 28, 2021		August 31, 2020		Balance Sheet Location	February 28, 2021		August 31, 2020
	(Dollars in thousands)					(Dollars in thousands)
Other current assets	$	11,008	$	34,052	Other current liabilities	$	1,154	$	8,821

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following table presents the pretax losses recorded in other comprehensive income relating to cash flow hedges for the three and six months ended February 28, 2021, and February 29, 2020:

	Three Months Ended				Six Months Ended
	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
	(Dollars in thousands)
Commodity derivatives	$	(2,084)	$	(8,130)	$	(110)	$	(15,233)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents the pretax gains relating to cash flow hedges that were reclassified from accumulated other comprehensive loss into our Condensed Consolidated Statements of Operations for the three and six months ended February 28, 2021, and February 29, 2020:

		Three Months Ended				Six Months Ended
	Location of Gain	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
		(Dollars in thousands)
Commodity derivatives	Cost of goods sold	$	4,082	$	2,126	$	16,755	$	6,978