(In thousands of dollars except as noted and per share amounts) Notes to CoNsolidated FiNaNCial statemeNts 9.  FINANCIAL INSTRUMENTS (CONTINUED):  Derivative financial instruments (continued):  Each type of derivative instrument marking-to-market gain or loss represents the total mark-to-market value at the  end of the year, less the mark-to-market value at the end of the previous year.  For sugar contracts, the amounts noted above are netted with the variation margins paid or received to/from the  broker at the end of the reporting period.The fair values of the sugar and natural gas contracts have been determined  using published quoted values for these commodities, while the fair value of foreign exchange forward contracts have  been determined using rates published by the financial institution which is the counterparty to these contracts.  The fair values of the interest rate swap have been determined by using rates published on financial capital markets.  The fair value of natural gas contracts, foreign exchange forward contracts and interest rate swap includes a credit risk  adjustment for the Company’s or counterparty’s credit, as appropriate.  The Company uses derivative financial instruments to manage its exposure to changes in raw sugar, foreign exchange,  and natural gas prices. In addition, the Company entered into interest rate swap contracts to fix a portion of the  Company’s exposure to floating interest rate debt on its short-term borrowings.The Company’s objective for holding  derivatives is to minimize risk using the most efficient methods to eliminate or reduce the impacts of these exposures.  The Company’s risk management policy is to manage the forward pricing of purchases of raw sugar in relation to  its forward refined sugar sales to reduce price risk.The Company attempts to meet this objective by entering into  futures contracts to reduce its exposure. Such financial instruments are used to manage the Company’s exposure  to variability in fair value attributable to the committed purchase price of raw sugar.The pricing mechanisms of  futures contracts and the respective forecasted raw sugar purchase transactions are the same. (a)  Raw sugar: 61 Annual Report 2013 Unrealized gain / (loss) For the years ended September 28, September 29, 2013 2012 $ $ Sugar futures contracts  (7,222) (5,654) Natural gas futures contracts  (1,193) (3,579) Foreign exchange forward contracts  (483) (2,437) Embedded derivatives  926 (2,573) Charged to cost of sales  (7,972) (14,243)