Physical Commodities Inventory

6 Months Ended

Mar. 31, 2022

The Company’s inventories consist of finished physical commodities as shown below.


(in millions)	March 31, 2022		September 30, 2021
Physical Ag & Energy(1)	$	262.3	$	248.6
Precious metals - held by broker-dealer subsidiary(2)	100.1		111.2
Precious metals - held by non-broker-dealer subsidiaries(3)	185.0		87.7
Physical commodities inventory, net	$	547.4	$	447.5

(1) Physical Ag & Energy consists of agricultural commodity inventory, including corn, soybeans, wheat, dried distiller’s grain, canola, sorghum, coffee, cocoa, cotton, and other commodities. These inventories are carried at net realizable value, which approximates fair value less disposal costs. Agricultural commodities inventories have reliable, readily determinable and realizable market prices, relatively predictable and insignificant costs of disposal and are available for immediate delivery. Physical Ag & Energy also includes energy related inventories, including primarily propane, gasoline, and kerosene, which are valued at the lower of cost or net realizable value. The Company records changes to these values in Cost of sales of physical commodities on the Condensed Consolidated Income Statements.

(2) Precious metals inventory held by StoneX Financial Ltd, a United Kingdom (“UK”) based broker-dealer subsidiary, is measured at fair value, with changes in fair value included as a component of Principal gains, net on the Condensed Consolidated Income Statements.

(3) Precious metals inventory held by subsidiaries that are not broker-dealers is valued at the lower of cost or net realizable value, using the weighted-average price and first-in first-out costing method. Changes in the values of these inventories are included as a component of Cost of sales of physical commodities in the Condensed Consolidated Income Statements.