The Fats and oils situation

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Material Information

Title:
The Fats and oils situation
Physical Description:
301 v. : ill. ; 26-28 cm.
Language:
English
Creator:
United States -- Bureau of Agricultural Economics
United States -- Agricultural Marketing Service
United States -- Dept. of Agriculture. -- Economic Research Service
United States -- Dept. of Agriculture. -- Economics, Statistics, and Cooperatives Service
United States -- Dept. of Agriculture. -- Economics and Statistics Service
United States -- World Food and Agricultural Outlook and Situation Board
Publisher:
The Bureau
Place of Publication:
Washington
Publication Date:
Frequency:
frequency varies

Subjects

Subjects / Keywords:
Oil industries -- Periodicals -- United States   ( lcsh )
Oils and fats, Edible -- Economic aspects -- Periodicals -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
periodical   ( marcgt )
serial   ( sobekcm )

Notes

Statement of Responsibility:
United States Department of Agriculture, Bureau of Agricultural Economics.
Dates or Sequential Designation:
FOS-1 (Mar. 1937) - FOS-301 (Oct. 1980).
Issuing Body:
Issued by: Agricultural Marketing Service, 1954-Mar. 1961; Economic Research Service, May 1961-<Oct. 1977>; Economics, Statistics, and Cooperatives Service, <May 1978>-July 1980; Economics and Statistics Service, Oct. 1980.
General Note:
"Approved by the World Food and Agricultural Outlook and Situation Board," Oct. 1977-Oct. 1980.
General Note:
Title from caption.
General Note:
Item 21-D.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 000502965
oclc - 01588232
notis - ACS2699
lccn - 46039840 //r82
issn - 0014-8865
sobekcm - AA00005305_00007
Classification:
lcc - HD9490.U5 A33
ddc - 380.1/41385/0973
System ID:
AA00005305:00007

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text

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UNITED STATES DEPARTMENT OF AGRICULTURE
BUREAU QF AGRICULTURAL ECONOMICS
WASHINGTON
OCTOBER 17 1939


------------ ------------- ---------------------------
-T H E- F A T S A N D 0I'L'S S I T U A -.
-. ..... -- ---- ----


US DEPOSITORY


COTTONSEED: FARM PRICE. ESTIMATED VALUE OF PRODUCTS PER
.TON OF SEED CRUSHED. SPREAD. AND COMPARATIVE
VALUES OF PRODUCTS. UNITED STATES.1930-39
DOLLARSI I--
"PER TON : Total value of products SN-- "-


10 ----
JA JULY JA JUL JAN JUL J J J JUL JA J JAN JULJULYY JUL JUL JAN JIJLf JAN JULY JAN
1930 1931 1932 1933 1934 1935 1936 1937 1938 1939
BASED ON AVERAGE YIELDS PER TON OF CO7TONSEED AS FOLLOWS OIL. Jld POUNDS CAhE AlND MEAL
SII POUNDS-HULLS 640 POUNDS AND LINTERS. IS POUNDS AND ON PRICES AS FOLLOWS OIL CRUDE TANKS FOB
SOUTHEASTERN MILLS MEAL.41 PERCENT PROTEIN MEMPHIS. HULLS CARLOAD LOTS ATLANTA AND LINERS NO. 4


SS ODPARIIMENI OF AGRICULIURE


NEG 35751 BUREAU OF AGRICULTURAL ECONOMICS


CHANGES IN THE FARM PRICE OF COTTONSEED TEND TO'FOLLOW CHANCES IN
THE TOTAL VALUE OF COTTONSEED PRODUCTS.. COTTONSEED OrL ACCOUNTS FOR
ABOUT HALF OF THE VALUE OF PRODUCTS, AND CHANCES IN THE PRICE OF OIL
USUALLY ARE ACCOMPANIED BY CORRESPONDING CHANCES IN THE PRICE OF
SEED. ALTHOUGH PRICES OF ALL COTTONSEED PRODUCTS, AND OF COTTONSEED,
ADVANCED FAIRLY SHARPLY II SEPTEMBER 1939, PRICES OF OIL AND SEED WERE
STILL SOMEWHAT LOWER THAN A YEAR EARLIER, AND BELOW AVERAGE.




FOS-32


Tablq 1.- Price per pound rf specified fats and oils, and oil-bearing materials,
September 1937 and 1938, and July September 1939

: September : 1939
Item : 1937 : 1938 : July : Aug. z Sept.
: Cents Cents Cents Cents Cents
Fats and oils-
Butter, 92 scare, Chicago ..................: 34.1 25.5 23.2 23.5 27.4
Olenmargarine, dom. veg., Chicago .........: 15. 16.0 14.5 14.5 14.9
Lard, prime steam, Chicago .................: 11.0 7.8 5.7 5.6 7,8
Lard, refined, Chicago .................... 13.0 8.9 6.6 6.4 9.6
Lard compound, Chicago ..................,..: 11.n 10.2 8.8 8.8 9.7

Corn oil, crude, tanks, f.i.b. mills .......: 6.9 7.0 5.3 5.1 6.8
Corn oil, refined, bbls., N. Y, ............: 10.3 9.9 8.6 7.8 9,1
Cottonseed oil, crude, tanks, f.o.b. S.E.mills 6.2 6.5 5.0 4.5 5.9
Cottonseed cil, p.s.y., N Y. ...........: 7.4 7.8 6.1 5.5 7.1
Oleo oil, extra, Chic-rgo ...................: 12.3 9.3 7.2 6.9 10.6
Oleostearine, bbls., '. Y. ................: 8.9 7.9 5.7 5.6 9,2
Peanut oil, crude, tanks, f.o.b. Gills .....: 7.2 7.2 5.6 5.1 6,6
Peanut oil, dom. refined, bbls. N. Y. ......: 11.0 10.6 8.9 8.6 9.5
Soybean oil,crude,tank cars,midwestern mills: --- 5.2 4.3 4.2 5.1
Soybean iil, refined, NI. Y. .................: 1..0 8.0 7.2 6.7 8.0

Pabassu oil, I'. Y. .........................: --- 6.4 6.0 5.8 7.0
Coconut nil,crude,tanks,f. ..b.Pacific Coast J: 7.2 5.9 5.7 5.6 6.6
Ccconut oil, edible, 1N. Y. 2 ..............: 9.6 8.2 7.6 7.6 7.6
Olive cil, edible, bbls., N. Y. ............: 32.0 25.1 25.1 25.1 27.9
Palm-kernel ril,denaturod,bbls., N. Y. 1/ ..: 7.8 6.6 6.5 6.4 6.4
Palm oil, crude, casks, N. Y. 1/ ........... : 7.8 6.6 6.7 6.6 6.6
Rape oil, refined, bbls., N. Y. / ..........: 17.2 14.8 15.3 15.4 16.0
Sesame nil, refined, drums, '. Y. 3/ .......: 11.1 10.5 9.2 9.2 10.3
Teaseed oil, crude, C. Y. .................: 9.4 7.5 9.5 10.3 12.0

Tallnw, ineditbl Chicago ...................: 6.6 5.2 4.4 4.0 5.9
Grease, A whit-, Chicago ..................: 7.4 5.2 4.5 4.1 6.2
Menhaden oil,crude,tanks,f.o.b. Baltimore ..: 4.9 4.0 3.5 3.2 3.7
Sardine iil,crude,tanks, Pacific Cnast ....: 4.8 3.7 3.6 3.1 4.2
Whale cil,refined,bleached winter,bbls.,N.Y.: 0.9 8.2 8.0 7.6 9.1
Olive oil fonts, priTm, asks, H. Y. 4/ ....: 10.8 7.2 6.9 6.8 9.0

Linseed oil,raw,tank carlots, Minneapolis...: 10.4 8.1 8.4 8.1 9.1
Linseed cil,raiw,rarl-ts,bbls., N. Y. .......: 10.9 A.9 9.1 8.7 10.1
Oiticica oil, N.Y. ............... 8 .......: 16.1 10.8 15.0 17.4 19.7
Perilla oil, drums, N. Y. 2/ ............. : 18.1 14.7 15.6 16.8 18.9
Tung cil, drums, Ui. Y. ....................: 21.2 13.1 21.9 22.0 26.6

Caster oil, nIo. 3, bbls., I. Y. ............ 10.2 9.2 R.2 8.2 8.A
Cod oil, lewfoundland tanked, bbls., N. Y. ..: 6.9 5.1 5/4.3 4/4.4 4.4
Oil-bearing materials-
Copra, bags, f.o.b. Pacific Coast ..........: 2.6 1.9 1.7 1.6 2.1
Cottnnseed, U.S. farm price (dol. per t-n) .: 19.2 21.2 20.7 16.2 20.6
Cottonseed, Dallas (dol. per ton) .......... --- 21.1 18.2 15.7 22.4
Flaxseed, Nn. 1 Minneap-lis (per bu.) ......:213.1 170.0 157.4 153.5 175.1
Soybeans, Nn. E Yellow, Chicagn (per bu.) ..: 98.0 84.0 93.0C --- 86.6
1 Includes excise tax of 3 cents beginning Nay 10, 1934. 27 Includes excise tax of
T.5 nents be inning August 21, 1936. 3/ Inoludes excise tax Mf 3 cents, Ma 10,1934-
..ugust 21,1936. 4/ Reported in drums beginning Sept. 2,1939. / Quoted as "untanked."


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FOS-32


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----------------------enun.emmeemaemmemm----------
THE FATS AND OILS SITUATION .
-- ------ ---... ------ --- -- -- -- -- -- -- -- -



Summary

Domestic fats and oils are now selling at about the same levels

as this time last year, according to the Bureau of Agricultural Economics.

Prices advanced sharply following the outbreak of the European War,

but some of the gains subsequently were lost. The rise in early

September was from the lowest levels in 5 years. Thp advances apparently

were due largely to speculative anticipation of future increases in

demand from Europe, but also reflected increased shipping costs for

imported materials and some strengthening in domestic demand conditions.

In the United Kingdom the Government assumed almost complete

control of the fats, oils, and oilseeds industry in early October. The

rendering and processing of animal fats still remains in private hands,

although maximum prices have been set for animal fats and oils. It is

believed that a more flexible price system may soon be extended to these

products. The price at which importers may sell refined lard in the

United Kingdom is now fixed at $7.65 per 100 pounds (at the official

rate of exchange).

Denmark and the Netherlands have prohibited exports of most fats

and oils.

The Scandinavian countries have purchased fairly large quantities

of cottonseed oil and soybeans in the United States in recent weeks,

according to unconfirmed reports in trade circles.





FOS-32


REVIEW OF RECENT-DEVELOPMENTS

Prices rise sharply in September

With the outbreak of war in Europe in September, prices of nearly
all fats, oils, and oilseeds rose sharply. For eight domestically
produced fats and oils, the average gain in prices from August to September
was about 22 percent, and prices of these fats and oils in September this
year averaged about 3 percent higher than in September 1938. In August,
prices of fats and oils (with the exception of the drying oils) were the
lowest since early 1934.

The sharp gain in prices in September apparently was due largely
to speculative anticipation of increased demand for fats in Europe, but
also reflected increased shipping costs for imported materials and some
strenrgthening in domestic demand resulting from recent improvement in
industrial activity and consumer purchasing power. Total supplies (stocks
plus estimated factory production) of fats and oils in the United States
for 1939-40 are indicated to be somewhat larger than in 1938-39, and the
largest on record.

The most pronounced advances from August to Septmber occurred in
prices for oleostearine and oleo oil, up more than 50 percent, and in
prices for cottonseed oil, lard, grease, sardine oil, t.allow, and corn oil,
up one-third or more. Prices for most other fats and oils also advanced
fairly sharply.

In comparison with prices in September 1938 the most marked gains
in September this year were in tung oil and oiticica oil, up 3O to 100
percent, and in teaseed oil, up about 60 percent. Domestic supplies of
tung oil and teaseed oil have been sharply curtailed in recent months
because of military operations in China, the principal source of supply
for these oils. Oiticica oil, produced in Brazil, is closely competitive
with tung oil. Prices for linseed oil at Minneapolis in September this
year were about 12 percent higher than a year earlier.

Other fats aind oils showing gains in prices in September over those
of a year earlier include perilla oil, grease, oloostearine, oleo oil,
sardine oil, tallow, whale oil, coconut oil, babassu oil, olive oil, and
rape oil. Prices for prime steam lard at Chicago "rere about the some as
a year earlier, while prices for soybean, sesame, corn, castor, menhaden,
peanut, and cottonseed oils were 2 to 9 percent lower.

Prices for some fats decline in early October

Following the sharp advances in early September, prices for some
fats and oils declined in late September or early October. But a large
part of the early September gains were maintained. Lard and cottonseed
oil, as well as coconut oil and corn oil, were among those commodities
for which prices declined. On the other hand, prices for linseed oil,
oleo oil, olive oil, and peanut oil remained comparatively steady in late
September and early October, while prices for tung oil, castor oil, and
fish oils continued to advance.







FOS-32


Oilseeds, oils, and fats under Government control in
United Kingdom

According to the London "B.oard of Trade Journal," and supplementary
sources, exports of fats, oils, and oilseeds from the United Kingdom were
prohibited beginning September 2, except under license. Imports of paints,
lacquers, varnishes, printers' enamels, printers' ink, and soap of all den
scriptions also were prohibited beginning September 5, except under license.

On September 4, the Food (Defence Plans) Department issued orders
prescribing maximum prices for sales of specified vegetable oils and fats,
marine oils, animal oils and fats, margarine, and manufactured cooking fats.
The maximum prices were sit at the respective averages for the 7 days pre-
ceding the orders. It was provided that beginning September 25 persons
selling the specified oilseeds, oils, and fats at wholesale "must be licens-
ed and also manufacturers or processors,"*according to "The London Grain,
Seed and Oil Reporter," Septcmber 8.

On September 11, persons holding stocks of more than 50 tons of oil-
seeds, oils, and fats outside the United Kingdom were ordered to transfer
such stocks to the British Government, unaer the directions of the Ministry
of Food. All persons holding stocks of more than 50 tons, whether situated
within or outside the United Kingdom, were directed to report their holdings
to the Ministry of Food immediately, according to "The London Grain, Seed
and Oil Reporter," September 12.

Early in October, the Ministry of Food requisitioned all future im-
ports of refined lard arriving in Great Britain except from Eire, and pro-
hibited all dealings in imported refined lard situated outside the United
Kingdom, except under license. Stocks of imported refined lard on hand
were not requisitioned, but holders were directed to report such stocks to
the Ministry. The order was not applicable to Northern Ireland, or to lard
other than the kind specified. Maximum prices of refined lard were reaffirm-
ed at 42s.6d. per 100 pounds for sales by importers to wholesalers, 46s8d.
for wholesale price delivered, and 6d. per pound retail, according to Agri-
cultural Attache, L. V. Steere, London, October 3.

Effective October 8, the Ministry of Food took over complete control
of the oilseed crushing and extracting industry, and the vegetable and marine
oil refining industries in the United Kingdom, including stocks of more than
5 tons on hand, to arrive, or controlled abroad. Maximum price limits for
oilseeds, vegetable oils and fats, and merino oils were abandoned, but the
licensing provision for persons selling such products at wholesale was re-
tained. The announced objective of the action by the Ministry of Food was
to safeguard the raw-material supply for margarine and cooking fats, and
to prevent wide price fluctuations, according to Agricultural Attache Steere.

It is to be noted that the animal oil and fats industry is not af-
fected by the above action. However, according to Mr. Steerc, it is believed
that a more flexible price system may soon be extended to animal fats and


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FOS-32


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oils. If this is done, wholesalers in the United Kingdom undoubtedly would
be in a position to offer higher prices for lard than the prevailing price
of 42s.6d. per 100 pounds ($7.65 at the official rate of exchange).

Exports of certain fats and oils from Denmark and the
Netherlands prohibited

The British Commercial Secretary at Copenhagen reports that as from
August 28 exports from Donerark of the following goods, among others, have
been prohibited: v-rnishes and lacquers, fish oils, animal fats, tallow
for technical usa, vegetable oils and fats. It is further reported that
all exports of margarine, cocoa beans, cocoa butter, soap, stearine and
paraffin and candles thereof, oleoaginous fruits, whale and seal blubber,
all hair hoof oil, and marrow oil from Denmark have been prohibited.
("Board of Trade Journal," London, August 31 and September 14.)

The exportation from the Ndtharlands of various essential foodstuffs
and related basic products has been prohibited by a series of decrees ef-
fective Septonber 7. Exceptions are to be made only in special cases.
Among the commodities included are oilseeds and oilseed m-al, animal and
-vegetable oils, fats, and fatty acids, ani products consisting of 25 per-
cent or more, by weight, of the foregoing (except butter and margarine);
cocoa beans and cocoa butter also are included. ("Foodstuffs Round the
World," Washington, October 6.)

Sales of cottonseed oil and soybeans to Scandinavia reported

It is reported in trade circles that fairly large purchases of
cottonseed oil and soybeans hav- been made in the United States in recent
weeks by Scandi.kavian countries. Purchases of soybeans are said to be for
future shipment. These reports are without confirmation.







Table 2.- Oleomargarine: Production and materials used in manufacture,
United States, August 1937 and 1938, June-August 1939

August : 1939 I
Item : : :
1937 1938 June July August


Oleo oil
Oleostearine
Lard neutral
Oleo stock
Beef fat
Total animal

Cottonseed oil
Soybean oil
Peanut oil
Corn oil



Total domestic vegetable 2,

Coconut oil
Babassu oil
Palm-kernel oil
Palm oil



Total foreign vegetable 3/
Total fats and oils

Milk
Salt and other miscellaneous


Production of oleomargarine


1,000
lb.

754
292
102
86


1,000
lb.

1,007
241
103
156


1,000
lb.

1,009
260
85
114
15


1,000
lb.


859
246
111
57
12


1,000
lb.

1,060
274
125
59
20


:1.234 1,507 1,483 1,285 1,538

:10,027 9,086 6,708 5,522 6,986
:2,742 3,650 5,470 5,625 5,574
S 137 282 167 1l6 254
236 --- 21 18 22



* 1, 14 13018 12,366 11,351 12,836

S7,714 7,282 2,129 1,560 1,763
523 1,202 1,106 1,332 1,345
S 986 202 -
13 --- ---



9,236 8,686 3,235 2,892 3,108
23,612 23,211 17,084 15,528 17,482

: 5,254 5,483 4,112 3,870 4,315
: 1,325 2,084 989 906 1,028


28,690


28,713 21,111 19,262


21,608


I/ Preliminary.
2/ Ordinarily domestically produced.
3/ Not domestically produced.


Computed from Bureau of Internal Revenue records and Internal Revenue Bulletin.


FOS-32


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UNIVERSITY OF FLORIDA
I 122 0I8i2l3IH l I5 III
3 1262 08904 2351