(In thousands of dollars except as noted and per share amounts) Notes to CoNsolidated FiNaNCial statemeNts 9.  FINANCIAL INSTRUMENTS (CONTINUED):  (d)  Liquidity risk (continued): (e)  Commodity price risk: (i) Sugar: (ii) Natural gas: 71 Annual Report 2013 In order to mitigate the overall price risks in the purchase of natural gas for use in the manufacturing  operations, the Board approved the use of natural gas futures contracts. Natural gas futures contracts cannot  be entered into for speculative reasons.The Board reviews on a quarterly basis the position of the natural gas  contracts. The Board of Directors also approved a trading book to a maximum of 25,000 metric tonnes of sugar  derivative contracts.The Board reviews on a quarterly basis the results achieved. For the Company’s beet operation, the Board of Directors approved an economic pre-hedge, using sugar  futures contract, of some of the beet sugar sales that will occur in the future, provided there is a contract in  place with the Alberta Sugar Beet Growers to grow sugar beets. Risks (continued): Derivative financial instruments for raw sugar, natural gas and forward exchange contracts are expected to be  financed from the working capital of the Company.  As at September 28, 2013, the Company had an unused available line of credit of $75.0 million (September 29, 2012 -  $140.0 million) and a cash and cash equivalent balance of $3.2 million (September 29, 2012 - $27.9 million).  Commodity price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate  because of changes in commodity prices. There are two types of commodity contracts which are entered into by the Company: In order to protect itself against fluctuations of the world raw sugar market, the Company follows a rigorous  hedging program for all purchases of raw cane sugar and sales of refined sugar.Any time raw sugar is priced by  a sugar supplier, a corresponding sugar futures contract is sold for the same quantity, period and underlying  value. Any time refined sugar is priced by a customer, the corresponding volume of raw sugar is purchased  for the same quantity, period and underlying value.The Company’s policy is to cover all raw cane purchases  and refined sugar sales as they are priced by the Company’s suppliers and customers. On a daily basis, the  Company monitors all net sugar futures contract positions against the physical priced purchases and sales  commitments to ensure that appropriate hedge positions are in place.