5 3 47:34
UnITED STATES DEPAfRTLIMT OF AGSWI.3TUPE
SBureau of Agricultural Economics
F08-34 Dece-:ber 15, 1939
THE FATS AND OILS SITU T I
-:,,i I t:r
- - -- -_FL -,
: In this issue:- : **- -
:/ ;: First effects of the war on United States fo ei .- ...
: trade in fats and oils.
Prices of most fats and oils, after declining in October, declined
further in November from the levels gained immediately following the out-
break of war in Europe. But in all cases, prices continued considerably
higher than those of last Aumust, when, except for the drying oils, they
were the lowest in more than 5 years. Pricos of lard, cottonseed oil,
and corn oil in November weae 10 to 15 percent lower than those of a year
earlier, largely as a result of increased lard production; but prices of
practically all other fatu and oils were hither than in .ov'ember 193S.
During the first 2 months of the war in Europe, imports of fats, oils,
and oilseeds, mostly for industrial purposes, were considerably smaller than
in the corresponding period of 193. Exports of lard, soybeans, and cotton-
seed oil were larger.
The reduction in imports apparently; was due to 2-vc-ra.l fi'ctors, in-
cluding large domestic stocks of ncst fats n,-d oils on ha-nd, dis.'.ption of
normal shipping facilities, incr?-soad ocean frei:- .t .cn. rv'r-.risk insurance
rates, and varying degrees of control over forcik: supolic..s exertcd by the
belligerent and neutral nations of western Europe. The increase in exports
of food fats apparently was due to fear of shortages on the part of certain
foreign nations, as well as to the disruption of normal imports of vegetable
oils and oilseeds from sources other than the United States.
It is significa-nt that exports of lard to the United Kingdom, our
most important market, decreased sharply in October. Recent events indicate
that the United Kingdom, pursuing a cautious buying policy, is endeavoring
to secure as iuch of its needed food supplies as possible from countries
attached to sterling exchange. Icvertheless, the United States is the only
nation with a large surplus of lard available for export, and it soems
probable that if shipping difficulties become more acute the United Kingdom
will increase its purchases of lard in this country at the e-pense of
vegetable oils from nore distant areas.
REVIEW OF RECENT DEVELOPLIMSTS
Prices of most fats cnd oils decline somewhat
further in Novembor
With few e::ceptions, prices of fats and oils declined sor:what further
in November from the levels attained duri.-i the fairly snh.rp advances in
September. But prices of all fats and oil: continued higher than the rela-
tively low prices of last Au.just. Butter pi ices "dv.anccd ses'.ona.lly in
Novenler, and the -rice of cn.tor oil, influ.-: ced partly by increased demarnd
for that oil in the dr-ing in-.ustries, adv-nced slightly. The price of cod
oil advanced sharply in NIovonber.
Prices of tunr oil, oleo oil, -,nd ol.:ost_.rine, vhich Ihad ,advanced
most in Septembnr, declined ;.ost in :oveontr. Corn-oil nriccs were down
about 10 porcr:-.t fron October to Uovc:l.ber, while I.-rd r-rices declined about
8 percent. Other fats f.nrd oils .:eloriencir:ng no.irt.rato rice reductions in
November include ::rease, olive-oil ro:i, -r.d s'r:i.re oil. Prices of uost
other fats and oils wvre tceT.d,'r to slightly loIn..':
Cor:pared ;:ith a year earlier, ,.ric..-3 of ,o::o of t::'-.c-O:.-tic fats and
oils in lovc-nbc.r 'ere Icw.er ayv: coe vw.ro hi. -her, her.e .ir, .of 11 the
imported fats a.nd oils ore hi.h.Tr. L:a.rd, c:,ottonseed oil, -.cr. cor, oil
prices were down 10 to 15 percent, laricl;' becau-ce of the :: -_l:-1 i. :-re'as in
lard production this ;-y r co-mpared with l.-st. Tallow, ir..nzc, c.-o cil,
peanut oil, and soybc.n oil prices w.7re little ch:anied. Butter ,.and cleo-
stearine prices vere considernbl:; higher. Linsoed oil also \..:.s up sharply
compared with a ,yar earlier.
- 2 -
Prices of most of the imported fats and oils in November this year
were 10 to 30 percent higher than in November 1938. However, teaseed oil
was up about 75 percent, tung and oiticica oils were up about 80 percent,
and cod-oil prices were more than double those of a year earlier. Reduced
shipments from China were largely responsible for the sharp gains in tea-
seed oil and tung oil prices, as well as for oiticica oil, which is closely
competitive with tung oil. Difficulties in securing shipments of fish-liver
oils from Norway and the United Kingdom apparently were responsible for the
marked increase in the price of cod oil.
Federal Surplus Commodities Corporation authorized to
purchase lard for relief distribution
The Secretary of Agriculture announced on November 29 that the
Federal Surplus Commodities Corporation has been authorized to purchase
lard. and certain cuts of salt pork for relief distribution. Lard already
had been designated as a surplus commodity under the Stamp Plan, which per-
mits eligible low-incomo families to purchase surplus commodities with blue
stamps issued free by the Federal Surplus Commodities Corporation. In
October, it was reported, 10 percent of the total purchases made with blue
stamps were of lard.
The Stamp Plan program now is in operation in 16 cities, and 12
other cities have been designated for inclusion in the program. Adminis-
trative officials estimate that the nrogran will be in operation in 125-150
cities by Julr 1, 1940.
Peanut-crushings estimate revised downward
The "Outlook for Fats, Oils, and Oilseeds for 1940," released
November 15, stated that it last 250 million pounds of peanuts from the
1939 crop would be available for crushing this season. In the !Hovember
issue of "The Fats and Oils Situation," released on the same date, the
peanut-crusbings estimate was revised dorwnward to about 200 million pounds.
It now seems probable that less than 100 million pounds of farmers stock
peanuts will be crushed during the current season. However, to this must
be added the mill-stock shelled poonunts which will be crushed, equivalent
to 40 to 60 million pounds of unshelled nuts.
The September 1 and October 1 crop reports, on which the original
crushings estimate was based, indicated a total 1939 crop of peanuts picked
and threshed amounting to 1,295 million pounds and 1,233 million pounds
respectively. Because of adverse wn.thor conditions, the indicated pro-
ductioTi as of November 1, totaling 1,147 million pounds, vas approximately
85 mi lion pounds less than a month earlier and 148 million pounds less
than 2 months earlier. It is possible that the December 1 crop report may
show some further reduction in the size of the peanut crop this year.
More than 530 million pounds of peanuts were cleaned and shelled
during the 1938-39 marketing season. With improvement in consumer incomes
and in the demand for peanuts, at least 810 million pounds of peanuts nre
likely to be cleaned and shelled this season. An additional 200 million
FOS-34 ~ _
pounds will be required for fu-m and loc7l uses. Thus less than 100
million pounds of farmers' stock pecnuts, mostly of edible grades, will
remain available; for crushing.
Acquisition of farmnrs' stock peanuts by grower cooperatives to
Deco.iber 9, r.s r-'corrld. by the Agricultural Adjustment Administration,
totaled about 72 millionn pounic, of which about 7 million pounds had been
diverted to crushing nills. With a relatively strong dL: and and high prices
prevailing for pr-.nuts for edibleo" uses, the cooperatives are not likely to
find it nccess-.ry to acquire many nore peanuts this season in order to support
yric.t. to grow.?rs. The avoriag farm price of peanuts in mid-NoveLiber was
3.4 cc-nts per pound compared nith 3.3 cents year earlier.
Total c-ushings for the 1939-4C season, including the unshelled
equivalent of si.olled pe-nuts held by mills, probably wvill not ex:ceod 150
million pounds :'nd n.ay be lss than that aniount. Thus the production of
pcan'it oil this so .son will be sharply reduced from that of last season,
,hen :lor,. thfn 300 million pounds of peanuts were crushed. Esti-r.tes of pro-
duction 7nd disroszition of pncanuts in the United States for recent years are
sho.'.n in t-.ble 1.
Table 1.- Pounuts picked n.d thrashed: Estinated production and
disnoxition in tl:h Unhited St'LteO, avecrago 1928-37, annual
: :i sp.o it ion: Fan.rrs' stock poeanJut- Oil-stock
: Clen-: :Sold for crushedd 2/ : Total
Period : Pr- : ed :Crushed: Ued eed and : : Un- : crushed
.ind :'uct1 on: Ind : for : on :other lo-: Shell-:shell-: basis
'ror : : zihll-: oil : f.-ns :cal uses : cd : ed : in-the-
id: : : :: : quiva: shell
____: : : : : : :lnt :
: Hil. Mil. Mil. il. Idil. MUil. il. Mil.
: t. lb. lb. 1b. lb. lb. lb. lb.
192l3-37 : 99 732 72 141 44 41 62 134
193 : 625 3 14 43 2 42 45
1934 : 1,010 647 159 155 49 54 80 239
1935 : 1,147 782 156 159 50 9 5 214
1936 : 1,253 -91 165 154 43 56 r 4 249
1937 : 1,,24 854 171 152 47 3$ 57 228
1 3/ : 1,.09 837 260 163 47 29 43 303
C3onrt- hl fron rr.ports of the A-ricul~turaI l M..rk:oting Service -Ad Eureau of
l/ Year bie. in-.ing Nove:.iber, V.-C. area; year beginning Septc:.ber, S.E. area;
year be.innir.c Au;.ast, S.W. area.
2 Year begin.in October.
e Proliniri-,r' r.
SI.iic-i.t,:d Iv:3-..rber 1.
FIRST EFFECTS OF THE VAR ON UNITED- STATES-FOREIGN TRADE IN FATS AND OILS
The United States normally has net-imports of over 1 billion pounds
of industrial fats and oils annually (including the oil equivalent of oil-
seeds), and exports on.balance 40Q. to..500..million pounds of food fats and
oils, of which a surplus is produced in this country. Under the exceptional
.circumstances brought about by the sharp curtailment in domestic lard pro-
duction during the 4 years 1935-38,.food fats and oils were imported on
Balance in those years. But with the market recovery in lard production
since 19389 and with increased production of soybeans, a surplus of food
fats and oils will again be available for export in 1940.
The November issue of this report indicated that imports of vegetable
oils and oilseeds by the United States, mostly for industrial uses, probably
Should not be restricted by the European War. On the other hand, it indicated
that the war would be likely to bring about increased exports of lard and
Imports reduced, exports increased,
S during first 2 months of war
During the first 2 months of the present war in.Europe, i.e., in
September and October 1939, imports of fats, oils, and-oilseeds into the
United States were materially smaller than in the corresponding period of
1938. Exports were larger than those of a year earlier. The reduction in
imports apparently was the result of a number of factors, among which were
the dislocation of shipping routes with the outbreak of war,.increased
ocean freight and war-risk insurance rates, and varying degrees of control
over foreign supplies exerted by the belligerent and neutral nations of
western Europe. It is possible that some decrease in imports would have
occurred in any event, because of the relatively large supplies of fats
and oils that were on hand in the United States before the war broke out.
For the 2-month period, imports of the principal fats and oils
(including the oil equivalent of oilseeds) totaled only 205 million pounds
compared with 312 million pounds in the corresponding period of 1938. Ex-
ports for the period totaled 89 million pounds compared with 46 million
pounds a year earlier. Thus net imports were reduced from 267 million
pounds to 117 million pounds or more than 50 percent.
The most marked reductions in imports from the September-October
period of 1938 to that of 1939 occurred in coconut oil and copra from
the Philippines, flaxseed from Argentina, cottonseed oil from Brazil, and
palm oil from Netherlands India and West Africa. Marked increases occurred
during the same period in exports of soybeans and soybean oil, cottonseed
oil, and lard. The trade figures for the various fats and oils, and oil-
bearing materials, are shown in table 2.
FOs-34 6 -
Table 2.- Imports and exports of specified fats and oils, including crmde oil
equivalent of oil-bearing materials, United States, September and October,
1938 and 1939
fats and oils-
Butter ....... :
Corn oil ......:
oil 2/ .......
neutral 3/ ...:
Oleo oil ......:
Oleo stocc ....:
Peanut oil ....:
Soybean oil ...:
Foreign food oils:
Sesame oil ....:
Teaseed oil ...:
Coconut o01 ...:
equiv. (63%) .
rod oil J/ ...:
Palm oil ......:
Rape oil ......:
Whale oil .....:
: 1938 : 1939 l/
: Sent. : Oct. : Sept. : Oct.
: E,:port s
S 1938 : 1939 I/
: Sept.: Oct. : Sept.: Oct.
635 469 1,947 4,928
1 3 2 1 79 50 28 21,215
14,014 8,S39 1,755 978 20,745 23,021 28,467 489905
5,866 6,292 5,973 5,o -
509 653 452 7 -
2,182 2,275 200 391 -
8,557 9,220 6,625 6,196 -
1,185 635 5,191 5,780 -
32,579 26,8.7 10,9ss 17,774 2/605 2/5082_1,4202/8,038
25,316 29,112 9,491 21,699 -
21 47 65 63 77 159 446 315
16 1 407 -
2,571 1,215 1 1 -
14,380 33,165 14,354 22,349 -
306 478 460 1,251
622 5,312 550 388 -
76,b99 96,809 41,507 69,305 682 667 1,866 8,353
Table 2.- Imports
oil equivalent of
and exports of specified fats and nils, including crude
oil-bearing materials, United States, September and October,
1938 and 1939 Continued
: Sept. : Oct.
Inedible indus- 6/ :1,000
trial fats and ols: lb.
Castor beans, oil:
equiv. (42%)....: 4,622
incl. cod oil...: 3,911
Olive-oil foots..: 4,979
Olive oil,inedilb: 752
Drying oils -
equiv. (33%)....: 24,S78
Oiticicn oil.....: s66
Perilla oil......: 2,505
Tung oil.........: 8,789
Total, all groups..:151,019
ts *: Exports
: 1939 I : 1938 : 1939 1/
: Sept.: Oct. : Sept.: Oct. : Sept.: Oct.
25,515 8,351 16,161
273 966 1,739
2,670 5,560 5,720
6,696 5,713 6,679 --
35,154 20,590 30,299
131,003 85,368 120,108 21,630 23,882 30,721 58,111
Compiled from official records of the Bure-u of Foreign and Domestic Commerce.
/ Crude plus refined converted to crude, using 0.93 for cottonseed oil and
0.94 for coconut oil.
D/ oes not include shipments to noncontiguous territories of the United States
Less than 500 pounds.
Not separately reported.
SExcluding the drying oils.
SFigures include herring, menhaden, sod, culachon, other fish and other fish
and marine animal oils. Not including f-ish-liver oils, other than small
amounts that may be included with exports.
8/ If any, included with fish oils, excluding cod oil.
2/ Reported in value only.
Imports of most fats and oils likely to continue large
Significant in the import trade of the United States are flaxseed,
castor beans, babassu nuts, and oiticica oil from South America, coconut oil
and copra from the Philippines, and perilla oil from Japan. Available
supplies of any of those commodities are nnt likely to be materially curtailed
because of the European War. The marked reduction in imports of coconut oil
and cppra in September and October this y2ar apparently was a temporary fluc-
tuation brought about by a lack of shipping space. Reduced imports of flaxseed
were a logical consequence of the marked increase in the domestic crop this
year compared with last. Smaller imports of castor beans reflected reduced
production in Brazil. Imports of babassu nuts and oiticica oil from Brazil
were larger in the September-October period this year than last.
Also significant are imports of palm oil and palm kernels from Nether-
lands, India and West Africa, olive oil from the Mediterranean region, and
tung oil from China. Although there may be some temporary disturbances in
the East Indies and African trade because of the large measure of control
exerted over supplies and shipping in those areas by the United Kingdom and
the Netherlands, no serious limitation is likely on exports to the United
States of palm oil or of palm kernels, production of which has. been increasing
in recent years.
So long as the war is not extended actively to the Mediterranean region,
imports of olive oil are likely to continue large, although some reduction in
the quantities available for shipment to this country may result from increased
demand for olive oil in Europe. Imports of edible olive oil for September and
October this year totaled nearly 12 million pounds, only slightly less than in
the corresponding period of. 1938. Imports of olive-oil f.oots, used largely in
the manufacture of- soap and. glycerin, however, were considerably smaller in
the 2-month period this year than last. This might have been due to increased
demand for such oil in Europe, but it u;ight also have been due largely to the
fact that stocks of domestic oils suitable for soap are relatively large.
Domestic supplies of tung oil have ben seriously curtailed throughout
1939 by military operations in Chinar. Duri.n the first 10 months of the year,
imports of tung oil totaled only 63 million pounds compared with 88 million
pounds in the corrlspondirg period of 193g. It is probable that as a result
of the further extension of the Japanese blockade of China, even smaller quan-
tities of tung oil will be available for import into the United States in 1940.
Oiticica oil and dehydrated castor oil are being substituted for tung oil to
some extent in the drying oils industries. Imports of oiticica oil from Brazil
from January through October this year totaled 18 million pounds compared with
3 million pounds a year earlier. A further increase in imports of oiticica
oil may be expected in 1940.
Imports of fish-liver oils in Septembr and October this year were
relatively larg2, apparently as a result of some forward buying on the part
of American -gencies. With the fishing industry of the United Kingdom ser-
iously curtailed by the war, world supplies of fish-liver oils, used largely
for medicinal and poultry-feeding purposes, may be reduced to some extent.
Howec. r, Norway and Newfoundland are large producers of such oils, and no
serious shortage is likely.
In- recent years the United States has imported moderately large quan-
tities of peanut oil, almost all of which has originated in the Netherlands
and in China. With imports of oilseeds into the Netherlands being seriously
- 9 -
Fos-34 9 -
limited by the war in Europe, and with exports from China impeded by the
Japanese blockade, not much if any peanut oil is likely to be imported from
those countries in 1940.. Imports of peanut oil during Septemb-r and October
this year, despite relatively smell supplies of domestic peanuts available
for crushing, totaled only 394,000 pounds compared with 3,844,000 pounds in
the corresponding period of 1938.
Exports of soybeans and cottonseed oil increase sharply
Exports of soybeans in October this y.ar amounted to 2,526,000 bushels
compared with 6,000 bushels in October 1938. In addition, approximately
1,441,000 pounds of soybean oil were exported. The combined exports of soy-
bean oil and of soybeans in terms of oil in October this year amounted to the
equivalent of about 22,656,000 pounds of oil, which was equal to more than
50 percent of the total exports for the 1938-39 season. The domestic crop
of soybeans for 1939 is estimated at about 80,000,000 bushels compared with
about 58,000,000 bushels in 1938.
As indicated in table 3, most of the soybeans exported in October went
to Canada, chiefly for transshipment to Europe by way of the St. Lawrence River.
It is not possible from the available data to state how much of this export
movement represents shipments to the United Kingdom, and how much shipments
to other countries. Direct exports from the United States to -he United King-
dom were almost negligible, but exports to Denmark, Finland, and the Nether-
lands wore moderately large.
American soybeans this season are taking the place in part of soybeans
formerly imported into Europe from Manchuria. Iot only is the shipping dis-
tance less from this country than from Manchuria, but the soybean crop in
that country is reported to be considerably s-.aller this year than last. Al-
though direct evidence of export buying iz .iat av:ilniblo, exports of at least
10 million bushels of soybeans seem probable for the 1939-40 season, beginning
October, compared with total exports of about 4,416,000 bushels for the 1938-
Soybeans are valued for the high-protein cake and rcal for livestock
feeding as well as for the oil which they contain. Tile cake and neal content
of Manchurian soybeans is s.i. to be sc-cwh-vt iiin-"r th.-. t:ir.t of American
soybeans, and in the past Manchurian soybeans h.ve b:,cn preferred in several
European countries for that reason.
Imports of cottonsced oil, whicn hadd b:Lr. fairly large since 1934, de-
creased somewhat in 1938 and in early 1939. A shnrp d..crence in imports oc-
curred in September and October this ye.ar. In thI letter n -nth, inp;rts were
almost negligible. Exports of ccttcnseed oil, -n the other h-n.d, increased
sharply during Septemnbr and October tiis y".rr, and exceeded imports by con-
siderable margins. Net exports in Se.te-ber am..untcd to about 822,000 pounds,
and in October tc about 4,809,000 pounds.
Prior to 1935 the United States had been a net export.-r of cottonseed
oil. But because of the shortage in domestic food fats brought about largely
by the droughts of 1934 and 1936, cottonseed oil was imported on balance from
1935 through the first 8 months of 1939. With the sharp increase in domestic
production of lard and soybeans in the past year, however, the import balance
for cottonseed oil was diminishing rapidly, and it is probable that imports
would have become negligible even if there had been no war.
- 10 -
Table 3.- Exports of soybeans and cottonseed oil frou the
United States by countries of destination September
and October, 193Q andi 1139
___Sobe an s
1.938 : 1939 1/
C:''.u.t:-y to which E-porteC : et. Oct. :t. -t.
: let;O bu t ,0 b:l1. b. :000 bu.
1: 1 00 bu L0 u. 1 0 0 r, bv. 1 000 bu.
(United ". n b-dci
F inla i.i
'le t .e rl.lasds
-__ -- 2 3 51
-- -- 3 216
S _3 -- --2/
Total, all cor.ntrie3s o
CottorseFd cil (ih t.en::s c1rude oil) 1_/
: 1,0T. Jr. C 0 lb. l 60._ 1,000 lb.
United :: 'r nom
P' T t .1
"Svj it e-rland
Phili rrine Islands
-- 2' 1 5
: 297" 2,25')
: ... .. 1?3
* 293 2,2641,
: ..-- -- .. 9C'.
: '- 53 123
* 1 _1 ,___ 1]
,''.2 .') I 1,2 114
:- ." 7 7,03
: 2, i "]. I78
' ,Tota', all cou.nnt'ri '. ',.* 1,. : ,".,92' t
C:'..n,,iled fr,:. .'- ,' ici :'e',.-i. s t'. u.: r-: '.. .:- r .'i 1: ,.ic:, c'. tic
C,?r,r.ne r ce.
2/ Less tha.r. 5r I ushe-.5 r ;-,I~un;l .
TCt/ Ta. -of ,.mirulnlded rnur.ber.
SRef iled an:l crude; refined convert d tc crude basis ty :'ividiir 'by 0.93.
- 11 -
The principal reason for the marke.' decrease in L:,, o'ts and sha.-T in-
crease in exports of cottonsee,: oil in Se.ttei"ber and Octo".cc this yc-ar appears
to have been a sudden increase ini der.!an l for' that oil, us. u.1 for both fooc
and soap, on the part of ..ada and the United 'in'om, at of certain o. the
neutral countries of Eur'ope, ncLabl.y Switzerland, Sweden, an-i. F.el.Tim. *uba,
Panaia, Colombia, Venezuela, a.d the Philipprine islands a!.s,: i.nceas.. their
imports of cottonseed oil froi.i the UniLted tates in Septacnbr and icto.er this
Al.t.:-ou.h domestic stcc'.:s of cottonseed oil or. .,u. .st 1 were unusual,
large (see Novemberr 2 ssue of this report), protIiction irolc. the 131 c:'or- of
cottonseed will be somewhat less than in i0o-;"-30 an.' :.on:ic :rabl; .s thn av-
erage. neverthelesss with large supplies of la-'d ,and so.-be 'r:s a'aa'Li- lle, tir-
is still room for so.ie expansion in exports cf ci'ottonsced. oi.. oil.is se.-so. I.
does not seen li-:el, however, that net exports of cottonsee.: oil ii 'i:'"0 -:ill
be very,, large.
Expo;.ts of la:.-: t.o Unite,' lin!.,Cr n d ccrease--increa.:e o_ i. .: s ot ie' c. Int.i-i. s
E.xp-' t s of laid, e:rcl'liin- shipments to noriccn, J.:.ou. territories to-
taled. aboi' .1 ill lion po ind".s for September ari Octo.:-r T,.is ye.r copei,.r''.
with '0 million pouiids in the sane ne;'iod of 193:.. T-. Ui'it- i. and 'Cub
were the tio princip-i foi-eign' takers. Indie i ive of tr-. r-": snt :i ait:--, pol-
icy of rest ict in" i-ices an'u hence i .'orcts ol 'r :-prF ."ts .- 'rn. ti. Ul.-i tcd
States to that cou..ntIry fell off sha-p.,,- ii ricto.e... l ort.s to the. .it-
ed ;in.dom for Septembeibr .-nd iactob- r were about ,.. il.i., -.-'.'.n..ls lIss tnan in
the cc'.:espo;Ic'in," period of 193/9. E'-pcrt to "u'.', 'o ia, c nc.e'.a
Sweden, andc B-Tlgium, hlowev-evr, w.-re c' .tsideI'a!'-- lcar. .r tha.i a ;'Lar ea' li.r,
Exports to Canada, Ecuadoir, t -he 'ethei--,..., Coita fi:.ca, FT:-i-a, an-d itl.:- also
showed Fmaterial irfl'eases.
The. larg ..... e- of cornt:"-.. o'v:.- oridc sli..j.:n e:: ;- : joi.l- b; th
United in rdor. nd FYi -ice: anr::: the i E.ic Sities of the i. ', i-.'. resulted in
marked deIi-ys in for i- T shi:'rini-. This ai:- t-i: f.:ar of 'short .'r;s ma: explain
the pr--.loIi.ce'd incr- as a. ian ii,:;-o? s ?'f la.:' f :'ot tihe. iUJ it. "ttc -s I:': o o .ia.-!;"
neut,?! ,_ ..itries during: t h- first 2 io.nth L f h. .':' -ir.-';v.:.r, ,.3 trs -
porta_ '" i reorcanizec., niman of the.s cunri'iV sr-,cic1," tohe .ji Ccnt :l
and Son -. ric-, '"a.;- find their n--i:- For kn ric.n lard l,.s pre-ssti' than
they sec t:-.-' T.c be at first, particila'l-1i in vicw of ti- :I.-i-i, sul,::iies of v..g:-
table oils and: oilscds that ar- availabic in So-uth.--r' i[i.-lis.l;rrc Ei "pll.iu-
produc.-_rn- count, ries.
Ex;,orL.s of lard to the Unitec. ,Lin o ou- pIr-r ci al i r' .. .t .i;,-I c.O -
tinue small .'or several nionths, but it does not 3se: li'1:l,- t,:at si:h ,:r- ort s
will be permanently r-dc-.d.
recent even.i s in:-'ic ate that th Unit; ii i-:' i -: .5 i ...; i.r- i ,.ritiC.us
buying policy-, ar-id acp ar-:nLly i n :...nr '-vorin- to 3 cu- a: unchi :." it, n;Ci_...":
food supplies a possible from co.intrics attach. to sLn'iir, c; .-i: Hw-
uver, the United Stat .s is th.:. chi' f surolu_ lard-:proicini ,-,.ti:, :-J.n it ria;
be assumed that if the '. ited ,ing.oi ain oi'er Eirop:' C'-..i-i i :". U-d.o0s
to obtain lard, the oul-: of it i,ill -c.mt.:: fro-,rr' L'is untri:. 'Icmrl .'-, riorc
than 30 percent of i,.orld cexorts of lar." o:-.i-inat .- ii t n!e Untited St'.t-.s.
- 12 -
Table ,,.- Ex, rts of lard ('inclidliir:q r-.etrral lard.) iro.. the ...ited States
-'.' countries c.f drSt inati.'-, 'c p.en -itr nd Ccto:err, l'"3 ...d 1939
Cc.nt r to : __ ?? 7. : 139 I/
v.'hiic.h e'r-:. ed : e.; t. : _. _: S : Oct.
: ~1 0.0 1'. .I O: .lb. L,-JiO 1 1,'00 lb.
United :j'i-, c........ : ,: 3 11, 3..10 .,9 -5 "., 3qO
Canad ...3............ .: 2,' 642
Total ..................: 17' ..3 ,032
Germany ...................: : :1
Poland and Da-zi- .......... 50 2____
Total ...................__ 95 1 .I..' -.
Bel ium ...................: .' 1,2'0
Finland ...................: 11 .n
Italy ......................: -- 22 55
Netherlands ................ -- '1 7'. 321
Nor:.a; ..y ....... ............. .. 7 1 25
...-.................... S 87.
Switzerland ............... --- --- 1 51
Total .............. ...: 2, 5. 0 5
Malta, rGozo, arnd iCr~ls ...:
Dominican Recub!i. ........:
tc al ..................
Costa Rica ................ :
Panama 2/ ............... :
Colombia .................. .
Total .......... ....... :
Other countrie:- ............
7,? .:, ':,- ,7, 1 5,785
I-5 1, 2521 171
__ _1i__ 65_ _
1 '? '_',"'-. 234
5'4 '2 :6 22?
,- = -' ", "-'"' i 1
Total all c.:.nt i.-~ -, ,' .'
Compiled front official records of the Bureau :' Forei. ai-* .: ..:..c rom-
merce. Does not include shipments to in-.c- -1.;. E. 1,. r..o i--.. :f th,
I/ Prelirira -; '.
2/ I.Icl'diri- F.-a'.na a Canal Zone.
3/ Total of unrounded numbers.
FOS-34 13 -
Alth-. ,h lfri- exports frrcm t'.is country from 1955 through 1'1T7; were
small, nri.:i -all.y because of three cuirtailmrnt in hog production resulting
from drou".' & : it is ex.'jcted that ti.e Uni'ed St.tes in '1h0 will again be
in a ro-otLi ?n to e,:oort r. rclativt. .: lure n'1unrt if lo.i. In the Western
Hemisrb.'.: C.mrn J.n nd 'rzil a.r tilh only' t":' o crv.-itrle: bcsic.e the United
State-s, .!-1ih crcd.lce lard for ;x(,ort. But the Traount nf lIrd rrailable
fnr ex-ort in those couL.trics is comnirativ ly small, ns indicated by
Table 5.- Ne-t exrcrts of lord, including heutr-l lard, from rrinciral
ex ortinr- coo:.tries, _.vrra:e;s 195-34, nrnual 19l5-38
Ccuntry : Av-,r:: Avur.aze: 1137 18
: o10220 F23o: : 3C--T 4: lq6 131
': .iil. Mil. Mil. i. 1 !.il i.il.
11-. lb. lb. lb. lb. lb.
Unit.-d. States 1/ : 767 S4 115 137 b62 234
Cnnad:. : 1 14 29 30 17
Br-ail : 2/ 6 C 1 -
Noth :rlIand.s : 4 2 16 15 8
Den:r,..rk : 24 C 27 27 29 23
Hujngary : i) ? '- 3? 31 27
Yugoslavia : 2 2 ir 16 18 15
Ireland : 3 4 / 5 5
S:,edn : / ] 1 2 2 2
China : 11 5 7 6 13 15
Australia : 2 2 3 4 4
Madacascar 2 2 2 2 2
Total, countries rt:'r:
than United St t' : ICS r1 168 155 151 120
Total, all countries. : ,75 687 2'- 292 313 354
Compiled from officit,:.a sources.
1/ Included shioneints to nrr.cor.tit-ious territcrits.
2/ 1et imn-rts.
Includes imit;ti.:-n l:;.r.
_/ Ycrr ended June T3.
The United Kiirgdcm is re'-ort. d tn h-v,.. 1- rge sticks of f.ts end oils
on ha.nd; ar. veci;,t?'blc oils and oilse-ds, s well -;.s -nir.l fa.ts frorr.
Argentina, n str ,t ii -r No li. Ze. ajlanrd, continue to te ir-ortd by the?
Unrited Kinr/o. c.'.r ier"' ble volume It Seemis -ro'..bl.l- h-, how.'.ver, that
British rrclduction 2. ." 1" oil, an im',nrtiint srorce of food -n.J so:-) fat
in recent :'e.r, : .'i'.1 be. s'rril: curt-Ailed if n-t :.ltg;'cthrr strnC-d during
the war. And with c' ntirnu'.1d sin'-ir.,-nf jlli,. .1 -i-r. n.-utral ships, the United
Kingdom und certain oth.r co;rntrit.- of -::cst :rrn Europe mn-; find it convenient
as timp goes on to secure supplies of food fats from the Unirted States be-
cause cf the shorter shipping distance from this country than from South
Arerica or Asih. It may be assumed that when the need for increased imnorts
of food fats from the United States becomes felt, means of oay' ent for such
imports will be made available.
It is estimated that exports and shipments of lPrd from the United
States for the calendar year 1959 will total more than 3n0 million pounds
com.rared with 234'million rounds in 1 38. Arroximately 69'i, million rounds
of l:,rd will bc available for export in 1940, but tot-l exports and shipments
.,-..in that year may not be much in excess of.40.0 millcin *-ounds. If the war in
Europe continues r.fter 1DLO, Earonean re-uirements for Anr-rican lard are
likely to increase, not only because of the necessity of maintaining shorter
shiprirgr routes, but also because of reduced animal-fat production in Europe
with relativ-'ly short scunrlies and high prices of livestock feeds, and be-
cause of reducdd production of whale and fish oils.
Table 6.- Oleomargarine: Production and materials used in manufacture,
IUnited States, October 1937 -nd' 1938, Aueuat-Octoler, 193'
Ite October :: tl r/
:_ 137 : I3 : Aug. : Sort. : Oct.
:lCCC b.l,,'iC 1_b.1 lt.1,O.'C I' [. 1,000 lb.
Oleo oil 773 1,026 1,'60 g62 620
Oleostearine : '' 344 27'4 32 236
Lord neutral 120 110 125 115 .
Oleo stock IC' 122 *- t5 71
Beef fat --- --- 20 --____
Total animal 1,293 1,602 1 ,S R 1,371 1,015
Cottc.rnsreda oil 27,154 10,,Ci 6,9g.6 9, '734 ,6P9
So:,'-oe:m oil 2,990 3,93s 5, .4 T7,7,92
Peanut oil : 255 215 )254 2F, 197
Corn oil 75 --- 22 35 22
Cottonseed stoarine --- -- --- 10 -
Sr.ybe,:'.-r stearine : --- 11 -- -- --
Total domestic vegetable. 23,474 1 5.44 12,b6 16, l F 1,9CS__
Coconut oil : 6,964 8,420 1,763 3,113 2,167
,rib-.ss. oil : 992 638 1, 45 1,409 9cg
Palm-kernal oil : 231 75 -- --.
T1.tl foreign vegetable 3/ : 8 187 9,133 3,10 49,)22 ,155
Totai fats and oils : _,,4 2F, 7_C-__17,4E2 22,601_ 1,Ob0
Milk. 7,497 6,247 4,.15 5,1'7 4,53S
Salt :idi other miscellaneous : 2,'Ij .1,476 1,C22. 1,281 1,116
Production of olcrmo- r .rie 4 ,467 35, 2 6f-P 2?;i1C 23,785
Ccr...i t jd frorr. Bur. ,u cf Irterni. Ro',:-n:Li records andr iintcrnail R -.en:ue l .ulletin.
I/ FPr.. 1 ir.in, r:'.
2/ Ordinarily icrm,-stically nroducei.
/ No'it i-rrCsti.cr-llry produced.
- 14 -
- 15 "
Table 7.- Price per pound of specified fats and oils, and oil-bearing materials,
November 1937 anrd 1938, end September-November 1939
I : Novomber : 139
Im _: 1937: 193g:Sept.: Oct.: Nov. 1/
:Cents Cents Cents Cents Cents
Fats and oils-
Butter, 92 score, Chicago ...................: 37.0 26.5 27.4 28.4 29.5
Oleomargarine, dor. veg., Chicgo ...............: 15.0 15.4 14. 15.0 15.0
Lard, prime steami, Chicagr ......................: 9.5 7.1 7.8 .6 6.1
i. Lard, refined, Chicago .............. ..........: 11.4 .3 9.6 8.0 7.2
Lard compound, Chicero .........................: 10.4 9.8g .7 9.7 9.5
Corn oil, crude, tant:s, f.o.b. mills ...........: 6.7 6.11 6.g 6.6 5.-
Corn oil, refined, bbls., N. Y. ................. 9.8 9.6 9.1 q.3 .6
Cottonseed oil, crude, tlu':s, f.o.b. S.E. mills : 6.n 6.5 5.9 5.8 5.6
Cottonseed oil, p.s.y., IT. Y. ................. : 7.1 7.4 7.1 6.s 6.5
Oleo oil, extra, Chic:o .....................: 12.2 P.7 10.6 I0.: 8.5
Oleostearine, bbls., II. Y. ....................... 9.1 6.g 9.2 .0 ,7.9
Peanut oil, crude, tanks, f.o.b. nills .........: 7.0 6.6 2/6. 2/6.8 6.7
Peanut oil, don. refine, bbls., I. Y. ..........: 10.3 10.1 9.5 10.5 10.6
Soybean oil, crude,tank c-,rrs,midwLstern mills ..: 5.6 5.0 5.1 4.9 1..
Soybean oil, refined, N. Y. ....................: 6.S 7.9 8.0 8.4 8.O
Babassu oil, N. Y. .............................: --- 6.1 7.0 7.C 6.7
Coconut oil, crude,t'-n.-s,f.o.t. Pacific Corst / 7.n 5.8 6 6.6 6 6.5
Coconut oil, edible, IT. Y. ./ ..................: 9.2 7.4 7.6 -- 8.1
Olive oil, edible, b ls., Y ................: 31.9 25.1 27. 30.0 29.1
Palm-kernel oil, den.tured, tbls., 1'. Y. ....: 7.7 6.6 6.4 -- --
Palm oil, crude, cas'k, N. IY. ...... .2 6.6 6.6 --- E.0
Rape oil, refined, bbls., N. Y" 1h/ ..........: 16.8 15.2 1.0 18.0 1?.0
Sesame oil, refined, d dr'uxm, U. Y. ..............: IC.5 1(. 10.3 -
Teaseed oil, cr-ide, Y. ......................: 9.3 7.5 12.0 13.5 13.1
Tallow, inedible, Chicrt o .......................: 5.' 5.2 5.9 5.6 5.5
Grease, A l. ite, Chica,7 ..................... .. Q .0 5.4 6.2 5.. 5.4
Menhaden oil, eri-ue, tanks, f.c.b.. Baltimore ..: b.6 4.0 3.7 4.6 4.5
Sardine oil, crude, tonks, P'-citic Cc.st .......: 1.8 .9 4.2 4.6 4.2
Whalo oil,rerfinel,tbl-.acned winter,bbls., N.Y. F/: 9.9 8.22/12.1 212.5 12.5
Olive oil foots, rrime, drums, II. Y. ............ 10.1 7.1 9.0 0.O 9.3
Linseed oil, raw, tarle corrlots, Miinnea-olis ....: 10.2 8.1 q.1 10.0 9.4
Linseed oil, raw, c-rlots, bbls., N. Y. ........: 1,.6 8.64 10.1 10.2 3.9
Perilla oil, drumrs, L.. / ...................: 17.2 14.4 18.9 19.0 18.7
Oiticica oil, N. Y. ............................: 14.6 11.5 19.7 21.0 20.6
Tung oil, drnms, 1.. Y. .........................: 15.6 14.5 26.6 28.2 26.2
Castor oil, No. 3, cbs., IT. Y. .................: 10.2 9.2 8.3 10. 11.1
Cod oil, Ilefoundl.ini, iric., N. Y. ............ 6.9 4.7 4.4 -- 9.6
Copra, bags, f.o.b. F .cific Conict .............: 2.4 1.8 2.1 2.3 2.1
Cottonseed, U.S. farm -rice (dol. ,-r tn) .....: 1 .0 23.1 20.6 22.9 23.S
Cottonseed, Dallas (dol. rrr ton) ..............: -- 2!.0 22.4 25.0 26.5
Flaxseed, No. 1 Minneacolis (ner bu.) .......... :2C.3 1:4.2 17,.l 185.7 183.9
Soybeans, No. 2 Yellow, Chic.:go (r.r bu.) ........ 93.0 74.0 87.0 98.0
Compiled from Oil, Priint and Drug REnorter, IN.tior.al Frrvisicner, 'hicago Daily
Trade Bulletin, Minneanorlis r:il,, Mr:irkc.t Rccori, ann reports of the Agricultural
Marketing Service -an'. Buroeu :.f Labor Statistics. 1 rel inary. Revised.
L includes excise tax of 3 counts boe nin May IA T1934.f Includer e cise tax
n 4 J.5 cents beginning Aui't .1, 19b. $7 Includes ecise--tax of 3 cents be-
ginning July 1, 1939.-
UNIVERSITY OF FLORIDA
1111 111111 IIIIIIII 2i
3 1262 08905 1212