Inventories
 12 Months Ended
Aug. 31, 2012
Inventory Disclosure [Abstract]  
Inventories

Note 4 — Inventories

Components of inventory are as follows:

 

     August 31,  
     2012      2011  
     (Dollars in thousands)  

Raw materials

    $ 19,773       $ 14,799   

Work in progress

      1,542         1,752   

Finished goods

      22,357         16,182   
  

 

 

     

 

 

  

Total inventories

    $ 43,672       $ 32,733   
  

 

 

     

 

 

  

To reduce the price volatility of corn used in fulfilling some of its starch sales contracts, Penford, from time to time, uses readily marketable exchange-traded futures as well as forward cash corn purchases. The exchange-traded futures are not purchased or sold for trading or speculative purposes and are designated as hedges. See Note 15.