(In thousands of dollars except as noted and per share amounts) Notes to CoNsolidated FiNaNCial statemeNts 9.  FINANCIAL INSTRUMENTS (CONTINUED):  Derivative financial instruments (continued): (c)  Foreign exchange contracts:  The Company’s activities which result in exposure to fluctuations in foreign currency exchange rates consist of  the purchasing of raw sugar, the selling of refined sugar and the purchase of natural gas.The Company manages  this exposure by creating offsetting positions through the use of financial instruments.These instruments include  forward contracts, which are commitments to buy or sell U.S. dollars at a future date, and may be settled in cash.  The credit risk associated with foreign exchange contracts arises from the possibility that a counterparty to a  foreign exchange contract, in which the Company has an unrealized gain, fails to perform according to the terms  of the contract.The credit risk is much less than the notional principal amount, being limited at any time to the  change in foreign exchange rates attributable to the principal amount.  Forward foreign exchange contracts have maturities of less than two years and relate exclusively to U.S. currency.  The counterparties to these contracts are major Canadian financial institutions.The Company does not anticipate  any material adverse effect on its financial position resulting from its involvement in these types of contracts, nor  does it anticipate non-performance by the counterparties.  The Company’s foreign currency forward contracts relating to the purchase of raw sugar, the sale of refined sugar  and the purchase of natural gas are as follows: Rogers Sugar Inc. 64 September 28, 2013 Original  Original  Current  contracts  contracts  contract  Fair value value  value  value  gain/(loss) (US$) (CA$) (CA$) (CA$) Purchases U.S. dollars Less than 1 year  87,477 90,321 90,433 112 1 to 2 years  4,614 4,912 4,813 (99) 92,091 95,233 95,246 13 Sales U.S. dollars Less than 1 year  (71,888) (73,875) (74,228) (353) 1 to 2 years  (860) (911) (899) 12 (72,748) (74,786) (75,127) (341) 19,343 20,447 20,119 (328)