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_00010
Classification:
lcc - HD9490.U5 A33
ddc - 380.1/41385/0973
System ID:
AA00005305:00010

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text



UNITED STATES DEPARTMENT OF AGRICULTURE
BUREAU OF AGRICULTURAL EcONOMIo
WASHINGTON
E I14 APRIL 14, 1938

S---- --- -------- awin.
T H E F A T S A N D 0 I L S S I T U AT I
-------- --- --------------a--------~ M.


SOYBEANS: PRODUCTION, UTILIZATION,
AVERAGE FARM PRICE, 1924 TO DATE
BUSHELS CENTS
S (MILLIONS) PER
MILLION Exported BUSHEL
Production Crushed (domestic mills)
40 __Seed and feed 200

Price

30 150



20 100



10 -- 1-- 50



0 0
1924-25 1926-27 1928-29 1930-31 1932-33 1934-35 1936-37
YEAR BEGINNING OCTOBER
FROM RECORDS OF INSPECTIONS BY FEDERAL LICENSED INSPECTORS

U. S. DEPARTMENT OF AGRICULTURE NEG. 32745 BUREAU OF AGRICULTURAL ECONOMICS



A MARKED INCREASE IN THE PRODUCTION OF SOYBEANS HAS
TAKEN PLACE IN RECENT YEARS, AND WITH LARGER SUPPLIES
AVAILABLE THE QUANTITIES CRUSHED ALSO HAVE INCREASED
TREMENDOUSLY. EXPORTS HAVE BEEN SMALL, AND HAVE OCCURRED
ONLY IN THOSE YEARS IN WHICH PRICES WERE RELATIVELY LOW.
HIGH PRICES IN EARLIER YEARS WERE DUE LARGELY TO THE
FACT'THAT A LARGE PART OF THE ANNUAL PRODUCTION WAS USED
FOR SEED PURPOSES.





FCS-14


Table 1.- Price per pound cf specified fats and oils, February March, 1937-38


1957
Fat or oil :
SFeb
SCents


Domestic prices -
Butter, 92-rcore, N. Y.
Oleomargarine, domestic vegetable,
Lard, prime steam, Chicago
Lard,refined, Chicago
Lard compounds, Chicago
Ccconut oil, edible, I.Y.
Crttonseed oil, crude, f.o.b. S.F.
Cottonseed oil, p.s.y., li.Y.
Scybean oil, refiiied, N.Y.
Peanut oil, domestic, refined, N.
Rape oil, refined, IT.Y.
Oleo oil, No. 1, N. Y.
Oleostearine, barrels, IE. Y.

Corn oil, refired, N.Y.
Olive oil, edible, I.Y..
Sunflower oil, refined, N.Y.
Teaseed oil, crude, U.Y.

Coconut oil, crude, pacific Ccast
Tallow, inedible, Chicago
Grease, house, I. Y.
Palm oil, crude, IT. Y.
Clive oil foots, barrels, I'.Y.
Palm-kernel oil, denatured, II.Y.
Babassu oil, tanksl, N.Y. (futures)
Sardine oil, tanks, Pacific Coast


Ch:





mi:


Y.


icago:


:~ :
:


Linseed oil, raw, Minneapolis
Tung oil, drums, /tlantic Ccast
Perilla oil, drums, I.Y.
S-ybean oil, crude, f.o.b. mills
Menhaden oil, crude, f.o.b. Baltimore

Fcreign prices 1/
Gcttrn oil, crude, naked, Hull
Copra, Resecada, Fhilippines
Palm-kernel oil, crude, Hull
Whale oil, crude, No. 1, Rotterdam
Tallow, beef, fair-fine, Londcn
Linseed oil, naked, Hull


34.3
16.5
12.4
13.3
13.8
11.2
9.9
11.0
12.2
13.5n
'1.4
13.8
10.4

12.9n
31.3n
12.Sn
14.7n

8.2n
8. e
8.5
6.en
12.5
7.4n
10.9
6.9

9.9
15.4
11.6

5.1


6.5
4.35
7.1
5.5
6.4
5.9


: 1938
: :
01 r F.eb Mar


Certs Cents

35.8 31.1
16.6 :15.0
32.5 6.6
13.2 10.1
13.7 : 10.3
11.0 : 6.1
9.9 : 6.7
11.1 : 7.9
12." : 9.1
13.5n : 10.On
11.7 : 12.1
1 .4 : 9.5
10.3 7.4

13.0 : 9.7
53.3n : 27.9n
12.2n :
14.On : 8.5

8.d r. 3.6
E.9 : .3
8. 4.9
6.C : 4.2
12.On 9.2
7.4 : 4.2
11.4 : C.8n
7.2 6.0

10.0 : 9.R
15.4 : 15.3
11.6 : 11.1
9.F : 6.1
5.7 : 5. On


6.5 4.1
4.4 :2' 1.6
7.2 4.5
5.0 3.6
6.2 4.6
6.3 6.2



rates of exchange.


SConverted to U.S. cents per pound at current monthly
SPreliminary.


Cents

30.3
15.1
8.8n
10.0
10.2
6.1
7.On

9.2
10.2n
12.0
9.2
7.6

10.2
26.0

P.4

3.6
5.0
4.6
4.1
8.9
4.1
6.7
6.2

9.6
13.3
10.6
6.4
4.9n


4.2

4.4
3.2
4.5
6.1


- 2 -


I






FOS-14


S O Y B EAN O IL A D SOYBEAN S


THE SOYBEP!] SITUlATTOil

BACKGRCUND.- A marked upward trend in soybean acreage in
the United States occurred during the 10 years from 1924 to
1933. Total acreage more than doubled, increasing frcm 1.8
million to 3.8 million acres. In the next 2 years acreage
nearly doubled again to a record of more than 7 million
acres in 1935. Production likewise has been on an upward
trend. The greatest increase was from 13 million bushels
in 1933 to 44 million bushels in 1935. The large increase
in bean production resulted from the increased acreage, the
larger percentage of acreage harvested for beans, and heavier
yields per acre. Average yields fcr the United States in-
creased rather steadily from 11 bushels per acre in 1924 to
16.5 bushels in 1935 and 17.5 bushels in 1937. The acreage
harvested f0r beans, which has always been less than the per-
centage harvested for hay, averaged 26 percent in the 5-year
period 1930-34, and 34 percent in tie 3 ye ars 19'5-37.

The monthly average farm rice of soybeans was about
$2.50 per bushel in 1924-25, when the demand for seed purpr-ses
was the most important farm price factor. Prices dropped to
a depression low of 44 cents per bushel in December 1932, but
rose to $1.26 per bushel in February 1935. Another price de-
cline followed the record harvest of 19'5; prices for the
1935-36 season averaged 79 csnts per bushel. They adv:.nced
in the 1936-37 season, and in May 1937, at $1.74 per bushel,
reached the highest level since 1929. With the harvesting .f
the large 1937 crop, prices -icclincd sharply to an average of
86 cents per bush6l for the 5 months Octcber 1937-February 1938.

Outlook f6r 1938-39

A 4-percent decrease in the prospective. plantings of soybeans for all
purposes, together with a probable smaller pr.-ducti.:n of cottonseed, indicates
that the domestic soybean situation may be somewhat more fr.vorable for pro-
ducers in 1938-39 than in the present season.

The March 1 prospective acreage of soybeans grown alone for 1938 was
reported as 5,906,000 acres compared with 6,139,000 acres planted last year
and 5,811,000 acres in 1936. Reductions from the 1937 acreage are confined
largely to the Corn Belt, with the greatest crerage reduction in prospect in
Illinois. On the other hand, in most of th3 southern States prospects are for
increased acreages. In the past, the Niorth Central section has been the most
important source of soybeans for crushing. If the percentage cf the crop
harvested for beans in these States is about the same as during the past few
years, and yields are about average, the total production of soybeans will be
considerably smaller than it was last year. In the past, however, less than
one-half of the crop has been harvested as bears, and changes in the acreage
harvested for beans may vary widely from changes in the total acreage.


- 3 -







F-S-14


The 1967 soybean crop totaled 41 million bushels, the second largest
crop on record. Since the harvesting of the 1937 crop, monthly average prices
received by producers have varied from 83 to 93 cents per bubhel, compared
with a seasonal average cf S1.28 for the 1976 crop. Prices in 1938-39 may
average higher than for the current se,'scn, however, if production of soy-
beans and competing products is below that of 1957, and demand remains near
the present level. Unless prcducticn is unusually low or demand improves
sharply, it is not likely, however, that prices will average as high as they
did for the 19".6 crop.

The level of soybean prices is dependent largely e-n the prices of
soybean meal and oil. In th.j past few month, prices of these products
have shown some improvement but they are still wr.11 below those of a year
ago. Monthly prices cf soybean neal have be.cn .'ereging somewhat above those
of 2 years ago, while scybea-i cil pricce hi:ve bc.r mat-rially lower.


Table 2.- Soybeans: Acry,age and yield per acre, 1930-37

: Harvusted :
:Equivalcnt : for beans
Year : Harvested : Cr-jzd or : :l rvcsted : of total : as a : Yield per
fcr hay : hc~ gd off: for br:s : solid : percentage: acre
1, :acreage 2/: of tctl :
~ : c r -crcago :
:1,0i,.J acres 1,C.''7 cre 1,000 acres 1,000 :.ores L-rcent Bushels

19 0 : 2,OL'1 58 1,'9 ,;0 3,,37 29.8 13.4
1931 : 2,7nhc 390 1,104 4,194 2r.3 15.2
193.2 : 2,675 397 77 4,049 24.1 15.3
1933 : 2,443 37 997 3,777 26.4 13.2
1964 : 4,069 386 1,539 5,994 25.7 15.0
1955 : 4,000 414 2,697 7,111 37.9 16.5
1336 : 3,251 1,233 2,132 6,646 32.1 14.1
1937 3/ ,6 986 2,.37 6,982 33.5 17.5




1 Solid equivalent of acres from which soybeans are gathered.
2 Computed as follows: Add acreage for 1. Grain; 2. Hay; 3. Cther purposes;
4. Interplalted with other crops reduced by C.0CO for all States except
Mississippi which is reduced by O.00.
3/ Preliminary.





-s


- 4 -





FOS-14


Table 3.-Soybeans produced, crushed, exported and used for
feed or seed, 1930-37


____ Year beginning October
STotal
Year :Production : Crushed :Exportcd I/:crushed and : Used for
S: :exported as : feed or
: : recentt ge : seed 2/
: ::of produc-
___: : : : tion
:1,000 bu. : 1,000 bu. 1,000 bu. Percent 1,000 bu.

1930 : 13,471 : 4,069 --- 30.2 9,024
1931 : 16,733 : 4,725 2,161 41.2 10,219
1932 : 14,975 : 3,470 2,450 39.5 9,119
1933 : 13,147 : ,054 --- 23.2 10,125
1934 : 23,095 : 9,105 19 39.5 13,678
1935 : 44,378 : 25,181 3,490 64.6 15,665
1936 3/ 29,983 : 20,619 18 69.7 9,048
1937 / 40,997

IF Inspected for export by Federal liccnsud inspectors.
2/ Production minus cxrorts, quantity crushed, and changes in stocks.
_5/ Preliminary.


Compiled as follows:
Production, Bureau of Agricultural Economics.
Crushings, Bureau of the Census, Animal and Vegetable Fats and Oils.


Table 4.-Soybeans crushed in the United States, by quarters,
1930-3?


Calcndar
year
1,000 bu.


1,731
4,637
4,643
3,154
4,164
12,308
26,740
1/: 21,680


Jan.-Mar.
: 1,000 bu.

S 421
1,090
: 1,706
1,050
933
2,662
7 ,832
S 6,780


: Apr.-June
1,000 bu.

345
1,289
1,091
811
768
2,239
6,792
4,352


July-Sept. .


1,000 bu.


239
974
635
397
457
2,198
5,348
2,719


1/ Preliminary.

Computed from Bureau of the Census, Animal and VegLtable Fats and Oils,
annual, and quarterly mimeographed reports.


Year
:*


1930
1931
1932
1933
1934
1935
1936
1937


Oct.-Dec.
1,000 bu.

726
1,294
1,211
896
2,006
5,209
6,768
7,829


- 5 -




FCS-14
World production and imports


- 6 -


Although accurate statistical data are not available for China,
estimates of soybean production for the 6 year 1931-36 indicate that
China usually produces more soybeans thin any otht;r country, in fact more
than the two next largest producers, Manchuria and the United States
together. Chinese production, however, is not a factor in world trade
because practically the total production is domestically consumed for
human food. In addition to hone production, Chin? normally takes important
quantities of soybeans and soybean products from Mlanzhuria.

M~rchurian production is by grPat o.ids th- most important factor
in the world so ,Iban trade. Average production in the 3 years 1935 to
1937 -: is more than three tires '.s Jarge rs that in the United States.
According to a .report prepared January 25, 1930, by Agricultural Commissioner
Owen L. Dnason at ShanGhni, the production of soybeans in Manchuria in
193? showed a slight increase over the preceding year, and with the larger
carry-over the available supr.ly is the largest in the past 4 years. Com-
bined exports of soyba-ans and soybean products are erected to exceed
those of last year.

GermaCr,:y lr Jarcn are the lTrgest imporrtrs of soybeans, but imports
have been decreasinr in recent years. Imports of soybeans into the United
Kingdom have be n sharply rerdu.ced since an import duty of 10 percent ad
valorem or soyb=ezns b-camne effective August 1, 195.. Imports of soybeans
into the United 'tates :ire practica-lly restricted to varieties not grown
commercially in thp United Stat.s. The-s- varieties are imported in small
quantities for tht manuf'ct'ire of ori-ntal foods and experimental plantings.
The duty of' 2 cer.ts per pound on soybeans is equivalent to about 14 cents
per pound on oil yield, and is effective therefore in preventing imports
'for crushing.

Table 5.-Soybeans: Production in speciv'icd countries, 1925-37

__: country and harvest season
Crop : United : China l/:Marchuria : Chosen : Japan :Natherland
year : Stes : : : : India 2/
:Au -Sept.:June-Iov. :Sept.- : Oct.: Oct. :Aug.-Oct. :June-Dec.
:1,000 bu. l,rl00 bu. 1,000 bu. 1,C00C bu. 1,000 bu. 1,000 bu.
192b : 4,P75 32,092 2. ,6G9 17,106 4,038
1926 : 5,239 107,740 2,276 14,213 3,608
1927 : 6,938 167 ,519 4,00 15,467 3,961
1928 : ?,8 0 177,804 19,310 14,110 4,303
1929 : 9,398 173,372 20,4:4 12,.R5 3,917

1930 : 13,471 196,949 22,9.9 14,351 4,692
1931 : 16,733 210,0Z8 192,057 .2 1,1b5 11,777 4,722
1932 14,975 240,685 156,816 22,578 11,435 5,471
1933 : 13,14 27,175 l' 9,056 23,3 4 13,307 6,676
1934 : 23,095 207,400 122,973 19,519 10,255 6,448
1975 : 44,373 134,412 141,793 92,401 10,719 7,448
1936 : 2 ,9?.3 3/226,179 152,.75 19,375 4/8,539
1937 3/ 40 997 15 ,330 ?2.606
_/ These data are nrescnted as rough estimates but are believed to be the
best available indication of trends of production in China. Estimates prior
to 192.1 are not available. 2 Ilative crops only. 3/ Preliminary. 4/ The
d:ita for 1936 are reported as production minus seed for planting. others,
Countries producing small amounts of soybeans include U.S.S.R. ,Bulgaria,and/






FOS-14 7


SODYBEAl O1L

Pr diction of sob o--n oil hfr the first qu.rtr (Octob -.r-Deconbcr)
of the 1'37-35 sseaso-n frmn the 1S37 crop Sf Leans wr.s the l.-r.est over
reported for an:- one qun rter, co:.. utin, to 7" million pJun.'s c2.n;;lr..d
with 6, million pound.c in the cjrres:lon'.in- pcri-,i in the previour season.
Prices of crude soybean Ail in tanks at ni:rrestern mills from Octob'er
through Decenber averaged l:.wer t.i-n p.t vny tine Esince the f.ll of 1' 34.
(See.t-.ble 10.) Durin- thc- 1935-36 P 193r-37 se,:sn- s of rrc..tly in-
creased production, crusnin-s irn the second quarter 'f the se-.son,
January t hrJri.i Ma nrchl, w7;r.a larger, than in the O'ctob.r-DZeccmber quarter.
Reported fnctor: consumption of r.:fined s.'be~r- oil :-r.jur:te.t t3 only 32
million p)Lunds front Oct'-'er through Decc-t_,r '1937 copre. with 55 million
pounds in the corresoondin.- mn,:,ths of 1j3c. A imil-r sitir.tion in the
current season prob-.bly *rul"C. c-.use stocks to continue -pvw -.rd.



Tr-tl-.e .- repiort,-d factory' production of ve retable oils,
specified :.'rrs, October Decenber


: : : : :So:,'yben
SCottn- : Sybeen : Ptrnut : Crn oil Tt-l oil as a
Year seed i il l : oil : rn T :pcrcentr-e
: : : : : :f tJt.l
S il. Lb il. .'.. 1-il.lb.' Mil. l : il.1 : P.r ent

1930 72~5 'S 5 2 76 O.S

1935 57Lh 4 2S : 30 : 77 6.5

1936 L24 5 7-J : .n

1937 : C 70 33 : 21 7.6



Stocks of soybe:-.n Jil at the- boinnin.- jf the 1-.37-3. cra'shin- season
mounted to 3- million pou-nds, conp'-red wit.i 33 million pounds :n October 1,
1936, and 14 million pounds a year earlier. 2y the end -,f Decenber 1937,
stocks had increased. to .ore th-r 6o2 million pounds, the 1?.rrest Dil stocks
ever recorded. On this d-.te total stocks of all fats rn'. oils were the
largest on record, excop;ting 1i33.





Fr'S-i4


-i -


T.'L-l 7.- S3y'been il, cr'a.e: Production, tr:.d.e, stocks, an'. parentt
.ic:.,Y'Lareance, by quarters, 1933-37

(____ __ t cx:: rts ;are in..'ic-ted t;,- a inus si_-_)
Calar : YRr : J:rn. : Apr. : July Oct.
Descri-'tin *nd year.r : ,..r :b.-innin : to : to to to
______: _.ct. .. *JJune Sent. Dec.
:L,".i' b :lb 1 ,^ l _.: L:) 1_ .1, lb 1. 1 Ol0V._iV 1 1 C.O O 1_ .
F2ct irry


nr):'u:tion -
1933
1934
1935
193
1937 1/
Tnp rts for
canzu'nLti-.ir -
1933
1934
1935

19.37 1/
r'nestic e2Tsrts -
1933
1934
1935
1936
1937 :5
Net trade -
1933
1934
1935
1936
1937 1/'
Stocks, eni- rf
peri>L -
1933
1934
1935
1936
1937 1/
Disappearance -
1933
19314
1935
1936
1937 1/'


E^?3
7C -. 5
: in r ,.' -
: 2C ,?97




: 7,15
: :C, -





: +, -.29



: t17C3
71: 1 '

: ', l0,
: i. :I i








: 31,-

: ;I, 111
: 22 ,129
: 2,0s


26,197
72,123

1 3,711



1, 'L
i. L
-1,, .1'- '

21,7[;'



?, ?








i- 7-
1 i i I





-I 72
1 ,-'-^-


22,142

,-3,7i 5


-, 77
7,:'9
r 3C,
22,579
.4, 142








1,2372



1, 77
-1




- 11
1,113



15, 17
17,7~7





21, CT
24, :1:4
U5.,9. l
r., ItL'^


6, 7r,4





,'





741
-+, ,





'.1
7r

I1 ,' ..-

I-1

-4
17':

3,7'1
13,57


11., 42, :

z.!, 4
21, 91 "
' ;, 1


'. .r.9

I4 ,
t I, n .


-3,. 22
3, 394
19,00 3
S4,199
24, 33 4


Pj2,7.2
27
4, 25
3,36r.



537


S, C5


2%9
1,253
35;7
2,352



iLL, 354
io,:.95


3e C1;7
3c ,,h

t,259
5,3,3
2.,9 19
62, 57
33,739


7,610
16,779
4-3,712
60,045
70,466


2/ 907
),73
3,0n3
)99
970

500
733
1,032

1, 50r

40 7
1,290
1,921
1Il



534
13,53 4

31,090
34,416
d2, 46c

5,373
13,916
23,769
64, 66
43,51l


1/ Preliminary. 2/ General irjr-,-ts, no r -Es q.-rts reported prior to Jnn. 1934.
Frliduiction and stocks 3ureanu 3f the Census, Ania?-L and. V,- -etable Fats and
Oils. Stocks are crJde plus refined converted to crude ".rsis (usin 0.94).
Tra'.c- fi,-ircs F:.rci.n Commerce -"'i Navi ;-ti n : f the United. States. Crude
anwr, refined not sepsrately rer'3rt,: i, used as crude.
Apparent disrppiarrnce c:nputcd from other items.







Though the consumption of soybean oil in the TUited States has increased
eight-fold in the past 5 years, it was lo-7ir in 1937 than in 1936, and still rep-
resents a fairly small percentage of the total utilizntion of oils or of the :-ro-
duction of domestic vegetable oils. Cottonseed oil dorirnttcs the vegetable oil
field. In the calendar year 1356, total disaprcarancc of s.oybcan oil for all pur-
poses amounted to 225 million pounds compared -ith 1,3W) million pounds of cotton-
seed oil; the spread nns ..ven greater in 1937 -1he. t'he iiscryearance of 183 million
poun'.s conrrarcd .:ith 1,752 million rponds of eottons.ed oil.

Disap..earance of soybean oil in 1937 continued tne trenJ.s .f 1935 and 1-36,
that is, the increase s:y -lies found their wvay into manufactured foods rather
than into paints and vrnisznns.

Table 8.- SoyLean oil: Re-' ortel factory consumption, by classes of
products 1931-37


Products 1931 1932
: .y,._ h T i rb lb.
Compounds and
vegetable
shortening : 10,69 4,S:59
Oleomargarine : 623 3
Other edible : 180
Total food : 1, 492 .. 5 2 ..

Soap 3,016 5,571
Drying industry 1J : ,9rl 11,593
Miscellaneous : 2,051 1,875
Loss, including
foots : .,625 1.15s
Total factory :
consum-tion : 2_?.35 25.2. 2o_
Total apparent
disappearance :.., .~_L_ _, 2 _
A

Compounds and : ZqEr..ca.t- p.re.
vegetable
shortenings 39 13
Oleomargarine : 2 /
Other edible : 1
Total food h41 2rn

Soap 14 22
Drying industry l_/ 2 46
Miscellaneous : 7 7
Loss, including
foots : 6


1933 : 1934 1935 : 1936 1937
lqnn^ Ib I.T^ ,n Ib.lj r,,, 1b. I r,^,l b.T.',^Tb
1 m.J 1..2 _1.r 1 lb. lb.1.10,0 1b.


)49 2,735 52,452 113,")7 90,798
7 24 1,7140 l,232 31,793
S-.. -..J--I.-- 21 2 ,6 15, l
-gg5_. .2.5 .i... L.4.4,l 1 LJJ L.


4, 235
14,274
2,62~


1,354
13,353
2,1.9V


2,549
17,871
1,665


5,n23
17,h19
3,4' 5


In,274
17,157
3,038


.22.95g 20.197 51.166 1S4. 1 178.516

_1t265l. -__1, J.L.JK.l 225.1a9 182.593
s a. percentage of the total factory
_qaonstli.r. on _s.Ls an ol -- -
e.rcentr PeLrcent Percnt Percent e 2aren

2 13 57 61 51
2/ 22 2 3 13
2 is
2 2 n10 12 9
4 15 6 1 78


1inn 1 in


4n 100 600 1 0 10
ion I1-10 irnCi 1i01) nn


-- -S -
j/ Includes paints and vanishes, linoleum and oilcloth, and printing inks,
2V Less than one-half of one -crcent.
Eased on Bureau of the Census, Factory Consurption of Primary Animal and Vegetable
Fats and Oils, by Classes of Products.


Total


FOS-14


- 9 -






FOS-14


- If) -


Utilization of soybean oil is possiblee in a wide variety of industries.
Unlike most oils, it coupotes for recognition both in the dryinf; field and in
food industries. When price, ore lo1 enough, it is used in the soar kettle.
Durin,- the war years 7'.en all animal fats -erc at a premium, larte qaantitips
of soybean oil ;,tre ir nrtri an! usel in soa,-. In 1917, 124 million :ou.nis of
irtportei oil were so usel, but fro.n 1921 to lj36, not rnore than r-1/2 million
:oun's were ise-l in soap in ary r ne yeir (Se- tible i). In no y-ar since 1921
has the amount of soybean .-il used in soap contribute cl as much as 1 percent of
the total fat materials us.--. for this puri.osu.

The amount of so'tb:;n oil used by the dryin-; industries increased from
9 million pounds in 1931 tn over 17 million ricunds in eocc. of the ;,ast 3 years,
but the rercentagcI c'.ntrin..tei b-- soybean oil to t"it total. trying oils used
has remained fairly constn:'t. In eac..h c.f th ast yr.ers soybean oil has con-
tributed from 2 to 2. percenT to the total of all tl.e 5r--in.- oils use:.; the
high of 2.6 perc-mnt -;cs r.anch!J.-1. in 1'?37, and t.he 1.-- in 1537 (t-tble 9).
A,,'arently, the increasing r.,ar in bet-een the prices of sybcan and linseed oils
in the latter part Of 1937 na nontsfficient indiuc ment to increase the per-
centage of soybean *il use'. by the -,aint and other drying industries. In 1932
when the slightly ln.roer -crc-ntre nf soybean oil 7as use-'., prices of soybean
oil ranked front 3 cin-. s to 1-1/2 cents er -nr.d. Scybean oil can compete .with
linseed oil only in ar.inixtu.re ritth a nore ra,iily drying nil such'as tung or
.cerilla. The ex.ise tax of 4-1/2 cents per ..uni o-la.ud on -,erilla oil in
Aucust 1936 doubtless his tented to lisr:ourrt'e this con'.ination. Prices of
Y'erilla oil for the ?-wlond:-r : ear 13?7 avera ;. e l.i :tly over 12 cents per pound,
compared with S or 9 cents ]ipr aouni. in thae 3 ;revio.s ;enrs. 'The record of
the past 6 years indicate: that, -ith ;presr2nt teci.nical knon7lo d-u, the per-
c -nta-e of total .d-rying oil': ccntriua tcr Lb s:.yb' -n oil ".:ill be increased only
within fairly narrow limits,

In contrast to the c':mpiarati'ely constant rpercenta.;e of soybean oil
utilized in the dryinir, indriltr.y, its use in fools has increased enormously in
the rast 3 years. That is, practically all of the increased sur-p-lies attri-
buted to the expanded acreage, larger perc.ntn,-e har-vetel for beans, anl the
higher yield per acre have been absorbed by food ind.u.stries. At the -resent
time sup-lies seem to be riLnnin, reaid of dem-und. Stocks on the latest reported
date, that is, Drce-ei -r 1'37, were G percent lar-rcr thai, rc-orte-1. on any previous
date.

To the total fats used in clenmnargarine, soy'yeaur oil contributed less
than one-tenth of one perc-ent in 19.32, 1953, and 134, -r.ile in 1537 it con-
tributed almost i", percent, the actual volure increasin- from 3 million pounds
in 1932 to 32 million .-ounsl in 1'i7. Similarly the i-perce.ta e contributed by
soybean oil to all fats us-ed in corn ounis and. ve.:;,t.-ablec shortenin-s amounted to
one-tenth of one ncrcornt in 1933 and over 7 "ercnt in 1936. A sli-ht decrease
oc-urrei in 1937, the anoint tot-alin- only ,. "-.rcecnt. Throughout the period
of greatly increased utilization in food, the price of soybean oil has been
si -ificantly lo-er than the pricu of cottonseed oil (See table 11).




FOS-14


Table 9.- Soyben o:il as a percenter:-. of the tot-l reported
factory consumntionL of f.-Lts aund oils in compounds Fnd
vegetable shorteninTs, oleou nrgarine, and .oap, and
of ezti.'at;.d total. use of drying cils

:Coupounds n ; : : :
Yerr : vegetable :OleoLarjarilne: Soap : indu trie
: shorteniigs : _:
SFercent Percent Percert Perce-t


, -.
1932
1953
1934
1935
1536
19537


0.9
.5
.1
.2
3.4
7.5
5.5


0.2


4.4
9.5


0.3
.4
.3
.1

.4
.7


1.5
2.5
2.6
2.2
2.5
2.2
2.0


1/ Less than one-ttnth of one, n-rccnt.

Tnble 10.- Oleoo lt r-ri.ne: Priduijction. am, ur_.itarial s .scd in nruufacture,
United States, January r'vi F&brrar-y, l'37 .1'- 1935:

S1737 I~ 193s 1/
Iterm Jan. : Feb. J'. : Feb.

1: 000 1b. ..2000 lb. .: 1000 lb. 1000 lb.

Oleo oil 1,304 1,363 74 9q11
Oleostearine : 2,1 225 : 2.4 24I
Lard, neutral 165 173 1. 146
Oleo stock : 1 131 : ___7 72
Total animal : ,_4 192 1,2'4 1,377__

Cottonseed oil : 13,315 12,.4c : 19,5.0 16,792
Soybean oil 3,125 2,2.3 : 4,217 2,756
Peanut oil : 307 24 : 23"0 313
Corn oil : 11l 175 : 205 41
Total domos5tic vegetable : 17, 4 15,540 :24.242 1i,907

Coconut oil : 6,3'37 5,1 : 4,3o0 6,431
Babassu oil 591 25 : 2,13; 1,099
Palm-kernel oil 4: k 3 : 919 528
Palm oil 136 191 -
Sesame oil : ___ -
Total foreign vegetable : 7,565_ 6,445 : 7,4'47 s,05sg

Total fats nmd oils :26, 57 23 E__ 32,1973 29.342


Milk
Salt and other miscellqieous


Production of oleomrnarrieo
1/ Preliminary.


32,359


29,234 : 40,476


30,669


Compiled and computed from reports of the Comuis.ioner of Internal Revenue.


5,9 0
1.537


5,197 :
1.3-45 :


7,350
1,990


__ ~ __


- 11 -




UNIVERSITY OF FLORIDA
II IIIIlHII!IIBIiIiIll
FOS-14 12 3 1262 08904 2468

Table 1.-Av.rane price per pound of soybean oil, linseed oil, and cottonseed
oil, specified clcalities, b:- months, 1932-33 to 1937-33

Cotton- : Soybean :Lised : Cotton- Soybean Linseed
Year :seed .-il,: oil, : Year :seed oil,: oil, oil r
: l -, bei ninr,: crude, in:crude in:
beginning: crude, i::cr-ude, in..: t., z' : :binnin:crude, in:crude, in: tn t,_a
I. 1 O ct ufUySc
Oct. : tranks, tnnks, i. : Oct. : tanks, : taks
:fob S. E.:idonct- :: : :fob S. E.:3idwest- : olis
: drills :ern *ills : : : mills :orn nills:
: Cents Ce'-ts Cnt : : : Cents Cants Cents
1932-33 : : :1335-36
Oct. : .25 3.3 5.5 Oct. : 9.17 3.06 9.0
Nov3. 3.00 2.-3 : : Nov. : 9.16 s.o6 9.0
Dec. : 2.72 3.00 : : Dec. : .3": 3.10 9.3
Jan. : 2.90 3.05 .6 : : J-n. .: .1 7.64 9.5
Feb. : 2.74 3.25 .4 : : Feb. : .) 7.20 9.4
HMr. : 2.S 3.4 3.6 : : .hr. : .30 .81g 9.3
Aprr. : .1 53.3S : : Apr. : C.6 6.81 9.2
'Jy : 4.1i: 4.5 3.2 : : ',a; 7.c2 6.26 9.0
June 4: ..0b : : June : 3.0 6.03 9.0
July : 5.5 7.4C 10.3 : : Jul; E. 7 7.92 9.8
Aug. : 4. 2.0 10.0 : : Aug. : 3.G6 3.03 O1.i
Sept. : 3.57 .5 10.C : : Sept. : 6 3.17 9.9

1933-34 : : :19P-37
Oct. : 3.2) .00 .: Oct. : .62 7.95 9.7
Nov. : 3.5 S.25 3.2 : : v. : .70 7.99 9.2
Dec. 3.4'3 .22 '.l : Dec. .' 9.11 9.5
JEa : 3.56 5.':5 .9 : : JuJ 0.36 9.83 9.S
Feb. : t.1, 5.O 3.0 : : Feb. : '9.9 9.94 9.8
Mar. 4.44 5.93 s.9 : : '. 9.94 9.75 10.0
A-r. : 4.4C 5.95 : : Apr. : .50 9.75 10.8
May : 4.23 5.y5 5.2 : : ly : 1.1 3. 10.9
June : 4. ) 5.50 9.6 : : June : 8.25 3.23 10.6
July : 5.10 5. O 9. : : July : S.O0 7.75 .10.5
Aug. : V. : 5 9 .4 : Aug. : 7.05n 6.47 10.6
Sept. 5.55 5.0 9.1 : Sept. : .22n 6.22 10.4

1934-35 : : 1937-3S :
Oct. 7.20 6.12 .0 : Oct. : .10n 5.85 10.4
Nov. 7.91 6.30 9.6 1 : !ov. 5.3 5.62 10.2
Dec. :.9 7.30 '.5 : Dec. : .94 5.25 10.0
JP. :. 5.55 7.75 8.4 6: Ju. .: 17 5.75 10.0
Feb. '10.03 '.IO ..7 : : t. 6.70 6.12 9.8
Mar. : 2 .12 39. : : .r. : 7.03n 6.40 9.6
Apr. 9.31 .44 9.1
May : .3' .76 9.2
Jure a: .7 ..' 9.1
July : 1.45 7.70 9.
Aug. : .72 7.13 s.2
Sept. : .74 7. 2

Coupil.?d from the Oil, Fain t, and Dr~; Reporter, except cottonseed oil prices
from October 1.-32 to June 133, which are from the New York Journal of Conmerce.