Derivative Financial Instruments and Hedging Activities (Tables)

6 Months Ended

Feb. 28, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

	February 28, 2022
			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	$	804,483	$	—	$	11,232	$	793,251
Foreign exchange derivatives	67,239		—		6,102		61,137
Embedded derivative asset	13,287		—		—		13,287
Total	$	885,009	$	—	$	17,334	$	867,675
Derivative Liabilities
Commodity derivatives	$	566,818	$	1,219	$	11,691	$	553,908
Foreign exchange derivatives	6,231		—		6,102		129
Total	$	573,049	$	1,219	$	17,793	$	554,037

	August 31, 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	$	532,832	$	—	$	4,174	$	528,658
Foreign exchange derivatives	19,429		—		5,582		13,847
Embedded derivative asset	16,488		—		—		16,488
Total	$	568,749	$	—	$	9,756	$	558,993
Derivative Liabilities
Commodity derivatives	$	444,861	$	2,485	$	4,174	$	438,202
Foreign exchange derivatives	8,506		—		5,582		2,924
Total	$	453,367	$	2,485	$	9,756	$	441,126

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, 2022 and 2021:

		Three Months Ended February 28,				Six Months Ended February 28,
	Location of Gain (Loss)	2022		2021		2022		2021
		(Dollars in thousands)
Commodity derivatives	Cost of goods sold	$	(612,033)	$	(191,284)	$	(580,435)	$	(392,646)
Foreign exchange derivatives	Cost of goods sold	72,785		(30,881)		40,291		(8,240)
Foreign exchange derivatives	Marketing, general and administrative expenses	1,697		(435)		503		173
Embedded derivative	Other income	253		302		1,799		1,866
Total		$	(537,298)	$	(222,298)	$	(537,842)	$	(398,847)

Schedule of Derivative Instruments, Purchase and Sales Contracts

all outstanding commodity contracts:

	February 28, 2022		August 31, 2021
	Long	Short	Long	Short
	(Units in thousands)
Grain and oilseed (bushels)	758,887	1,128,403	666,726	851,582
Energy products (barrels)	7,661	8,612	9,881	7,656
Processed grain and oilseed (tons)	1,517	4,787	559	3,418
Crop nutrients (tons)	53	27	66	12
Ocean freight (metric tons)	60	—	210	—

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, 2022		August 31, 2021		Balance Sheet Location	February 28, 2022		August 31, 2021
	(Dollars in thousands)					(Dollars in thousands)
Other current assets	$	4,296	$	11,874	Other current liabilities	$	2,162	$	1,001

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

The following table presents the pretax gains relating to our existing 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, 2022 and 2021:

		Three Months Ended February 28,				Six Months Ended February 28,
	Location of Gain	2022		2021		2022		2021
		(Dollars in thousands)
Commodity derivatives	Cost of goods sold	$	5,005	$	4,082	$	18,259	$	16,755

Cash flow hedge gain (loss) recorded in other comprehensive income

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, 2022 and 2021:

	Three Months Ended February 28,				Six Months Ended February 28,
	2022		2021		2022		2021
	(Dollars in thousands)
Commodity derivatives	$	(1,977)	$	(2,084)	$	(15,273)	$	(110)