Notes to CoNsolidated FiNaNCial statemeNts (In thousands of dollars except as noted and per share amounts) 9.  FINANCIAL INSTRUMENTS (CONTINUED):  (b)  Currency risk: • sales of refined sugar; • sales of refined sugar in U.S. dollars; • purchases of natural gas; • sales of by-products; • Taber refined sugar and U.S. by-products sales; and • ocean freight. As at September 28, 2013, the U.S./Can. exchange rate was $1.0310 (September 29, 2012 - $0.9836).  The Company mitigates its exposure to foreign currency by entering into forward exchange contracts (see note 9  Derivative financial instruments (c) - Foreign exchange contracts). The Company had the following exposures at year-end:  Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the foreign exchange rate.The Company’s cash flow exposure to foreign currency is due mainly to  the following: Risks (continued): September 28, September 29, 2013 2012 (US$) (US$) U.S. financial instruments measured at amortized cost: Cash 1,503 989 Trade and other receivables, including initial margin deposits  14,349 13,265 Trade and other payables  (2,197) (2,501) 13,655 11,753 Financial instruments at fair value through profit or loss: Raw sugar futures sales contracts  144,926 110,956 Raw sugar futures purchases contracts  (182,119) (164,012) Natural gas contracts  (14,739) (20,141) Variation margins received on futures contracts  (1,889) (2,009) (53,821) (75,206) Total exposure from above  (40,166) (63,453) Forward exchange contracts  19,343 27,664 Gross exposure  (20,823) (35,789) 66 Rogers Sugar Inc.