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_00030
Classification:
lcc - HD9490.U5 A33
ddc - 380.1/41385/0973
System ID:
AA00005305:00030

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text

r.. *. If I





g^ i'1 S SITUATION

BUREAU OF AGRICULTURAL EC ONOM ICS
.: UNITED STATES.DEPARTMENT OF AGRICULTURE

S FS-50 APRIL 1941..
:T .-" """---------- ~ ~ ~ --- --------'


r -* IN THIS ISSUE: --
-. .* FACTORY CONSUMPTION.OF FATS AND OILS S P .
.. BY CLASSES OF PRODUCTS, 1938-4
,- ie="- -
..FACTORY CONSU MPTJON OF SOYBEAN OIL. BY CLASSES
I 1 :. OF PRODUCTS. UNITED STATES. 1935-40 .S. DEPOSITORY
A POUNDS
I MILLIONS) *


450 Soa6 miscellaneous and
Soss. ncJuding ools. .
Au'. ::.: Drying industries ...... .
..' 400 Food produds ......... .


350


300



...: ..2 ..
250


200


150 -


i. _100.:


50



S1935 1936 1 37 1 38 193 1940
DATA FROM BUREAU OF THE CENSUS 'PRELIMINARY
U 5 OEPIARTENT OFAAICiLTURE .re H i] gUREN OtdRICuLTURAL EC hOMIC!
+"- -O -


44 APPROXIMATELY 339 MILLION POUNDS OF SOYBEAN OIL ENTERED INTO THE MANU-
FACTURE OF FOOD PRODUCTS IN 1940 COMPARED WITH 305 MILLION POUNDS IN 1939.
N ;. I ADDITION, 37 MILLION POUNDS WERE USED IN THE DRYING INDUSTRIES COMPARED
1i .,'.'WlT.T28 'MILLION POUNDS A YEAR EARLIER. UTILIZATION OF SOYBEAN nOL u SEC,
,,-:....': IN MISCELLANEOUS PRODUCTS, TOTALING 18 AND 17 MILLION POUNDS RESPECTIVE-
SLY. IL:k0 WAS MATERIALLY LARGER THAN A YEAR EARLIER. (FOR DATA, SEE TABLE 2
Of, :... THIS REPORT, AND THE APRIL 1939 ISSUE OF THE FATS AND OILS SITUATION).
"l i~i :: :; = :i ......... ....




.PRIL 1941 2

Table 1.- Price per pound of specified fats and oils, March 1939 and 19401
January-March 1941

: t, 1941 !
Item -1939 -140 Jan. : Feb. i Mar.
: Cents Cents Cents Cents Cents
Butter, 92soore, Chicago ......................... 23.7 28.0 30.1 30.1 0.8
Butter, 92-score, New York ........................: 24.3 28.6 31.1 30.8 31.0
Oleomargarine, dom. veC., Chicago ................: 14.5 15.0 14.5 14.5 14.5
Compounds (animal and veg. cooking fats), Chicago .: 9.2 9.6 10.3 10.5 11.1
I.ard, prime steam, tierces, Chicago ...............: 6.5 5.9 5,2 6.2 7.0
Lard, refined, cartons, Chicago 1/ ................: 7.5 6.5 6.8 6.8 7.3
Oleo oil, extra, tierces, Chicago ................: 7.8 7.1 7.0 7.0 7.2
Oleostearine, bbl., N. Y. .*.**.....................: 6.6 6.3 6.4 6.3 6.8
Tallow, edible, Chicago ..........................: 5.6 4.9 5.4 5.1 6.0
Corn oil, crude, tanks, f.o.b. mills .............: 6.0 6.1 6.7 6.6 6.6
Corn oil, refined, bbl., N. Y. ....................: 8.9 8.8 9.1 9.4 9.1
Cottonseed oil, crude, tanks, f.o.b. S.E. mills ...: 5.8 5.9 5.4 5.3 6.4
Cottonseed oil, p.s.y., tank cars, N. Y. ..........: 6.9 6.7 6.4 6.2 7.1
Peanut oil, crude, tanks, f.o.b. mills ...........: 5.9 6.6 5.6 5.5 6.2
Peanut oil, dom. refined, bbl., N. Y. .............: 9.1 9.6 8.2 8.5 8.8
Soybean oil, crude, tank cars, midwestern mills ...: 4.9 5.7 5.1 5.1 6.0
Soybean oil, dom., crude, drums, P. Y. ............: 6.3 7.2 6.9 6.8 7.9
Soybean oil, refined, drums, N. Y. ................: 7.5 8.4 8.2 8.0 8.6
Babassu oil, tanks, N. Y. .........................: 6.1 6.2 -- -- --
Coconut oil, crude, tanks, f.o.b. Pacific CoIst 2/.: 5.9 5.8 5.9 6.0 6.8
Coconut oil, edible, drums, 1!. Y. 3/ ..............: 8.2 8.6 7.8 8.0 8.8
Olive oil, edible,drums, Y. ....................: 25.1 26.0 43.2 42.9 46.9
Olive-oil foots, prime, drums, N. Y. ..............: 7.0 8.3 10.2 10.6 11.5
Olive-oil, inedible, drums, N. Y. ................: 11.6 12.8 31.2 30.4 30.8
Palm oil, Niger, crude, drums, N. Y. 2/ ...........: 6.8 7.6 7.4 7.2 7.7
Palm oil, Sumatra, bulk, 1. Y. 2/ ..................: 5.8 6.0 5.2 5.2 6.6
Rape oil, refined, bbl., II. Y. ....................:4/10.8 4/13.7 12.8 12.7 12.7
Rape oil, blovn, bbl., N. Y. .....................: 14.2 17.2 17.5 17.5 17.5
Sesame oil, refined, drums, Y. .................: 9.1 14.7 -- -- --
Teaseed oil, crude, drums, Ii. Y. ..................: 8.9 12.0 17.5 17.2 17.4
Tallow, inedible, Chicago ......................... 5.1 4.6 4.7 4.5 5.4
Grease, A white, Chicago .......................... 5.3 4.6 4.8 4.6 5.5
:or: den oil, crude, tanks, f.o.b. Baltimore ......: 4.1 4.6 4.4 4.7 5.4
Car .no oil, crude, tanks, Pacific Coast .......... 4.1 5.0 5.4 6.0 6.9
":haLe oil, refined, bleached winter, drums, N. Y. .: 8.2 4/ 9.5 9.5 9.5 9.5
Lin-ed oil, raw, tank cars, Minneapolis ..........: 8.6 10.3 8.7 8.8 9.0:
Lir. :-ed oil, raw, drums, carlots, !i. Y. ...........: 8.9 10.7 9.6 9.6 10.0
P=.- .la oil, drums, ;. ........................ :4/ 9.7 4/21.0 18.0 18.1 18.2
Oi-' :ca oil, drums, U. Y. ............. ...........: 9.8 19.8 19.0 18.1 17.2
Tung oil, drums, .1. Y .. ...... .....................: 15.2 27.4 27.2 27.6 28.6
Castor cil, dehydrated, drums, carlots, L. Y. .....: -- 18.1 13.1 13.2 13.2
Cas;r oil, !.o. 3 bbl., 1. Y. .....................! 8.9 12.8 9.8 9.8 9.8
Cod-li;h- oil, m d. U.S.P. bbl.,N.Y,(dol.per bbl.).: 23.8 33.5 71.7 68.5 71.0
Cod oil, !leuv.forinilandl, bbl., :T. Y. ................: 4.0 9.0 8.4 8.7 9,0
.r le i, P-ai: an, r_6 I- U p-".>.-, T, stional Provisioner, and reports of
the Arric.'ltural "narketin- Service n1.; PL;aqru of LSbcr Statistics. Prices quoted in-
clude excise ta-es and duties wh;-e 1- ln ab le, 1/ Renortcd in tubs prior to July
19-0. 2/ Three-cent processing tax ad i;dj to price" as originally quoted. 3/ Prior to ;
this issue, prices for this series were given on the bisis of sales in tEnks, 0.75 td
1.25 nents per pound lower than the present basis of quotation (drums). / Revised.







.... 50 3 -

--. --leim --e ib------ -
THE FATS AND OILS SITUATION
---------------------------------------------------------------

Summary

Lard prices during the coming year probably will be strengthened by

Government purchases under the recently announced program for support and sta-

bilization of hog prices. Lard production so far this year has been consider-

ably smaller than a year earlier, and is expected to continue at reduced levels

until the spring of 1942. As a reflection of this situation, and of probable

purchases of lard for export to Great Britain under the lend-lease legisla-

tion, prices of lard and competing fats and oils have advanced fairly sharply

. since late February. During the past 2 years, lard prices have been abnormal-

ly low in relation to prices of competing products. For the coming year, ad-

vances in lard prices may be more pronounced than in the case of such products.

Other factors thich will tend to strengthen prices of lard and other

fats and oils during the next several months include: (1) A stronger con-

sumer demand resulting from increased industrial activity, particularly in

the second half of 1941; (2) higher ocean shipping costs for imported oilseeds

and oils; and (3) possible restrictions in the volume of imports as a result

of reduction in shipping space. Continued weakness in the effective foreign

demand for fats ard oils resulting from the blockade of much of western

Europe, however, will be a restraining factor on prices in surplus-producing

areas and in this country.

Prices of domestic oilseeds probably will reflect any sustained rise in

prices of vegetable oils. But with abundant supplies of feedstuffs available,

:, and with prices of domestic oilcake meals at comparatively low levels, price

gains for oilseeds are likely to be more moderate than for oils.







APRIL 1941 4 -

The general..level of pricess of fats and oils in March was 6 percent

higher than a month earlier and 11 percent higher than a year earlier, but was

28 percent below the 1924-29 average. Prices of domestic oilseeds also ad-

vanced in March, but continued below last year's levels.

-- April 14, 1941

REVIEW OF RECENT DEVELOPMENTS

Prices of fats and oils highest
in over 5 years

Wholesale prices of fats and oils advanced in March to the highest level
since January 1S38. The price index for arch, at 72 percent of the 1924-29
average, was four points (6 percent) higher than a month earlier and seven
points (11 percent) higher than a year earlier.

Substantial -ains were recorded in prices of tallow, greases, cotton-
seed oil, palm oil, fish oils, soybean oil, lard, coconut oil, peanut oil,
and olive oil. Prices for oleostearine, cod-liver oil, tung oil, linseed oil,
oleo oil, and butter were moderately higher than a month earlier. Little
change occurred in prices of castor, perilla, rape, and teaseed oils; nhile
prices for t'ro oils, corn and oiticica, declined.

Comparison of prices in March this year and last reveals striking gains
for cod-liver oil and olive oil, imports of which have been sharply curtailed
by war in Europe. Prices for most other fats and oils were considerably
higher in Larch this year than last. However, prices for a few oils, notably
the drying oils (excluding tung) and peanut oil, continued below last year's
levels.

Prices of oilseeds as well as most oils advanced in March, with copra
prices showing the most pronounced gain. Fairly large increases were re-
corded for soybeans and castor beans, and moderate gains for peanuts, cotton-
seed, and flaxseed. Copra prices were considerably higher in March than a
year earlier, but prices for other oilseeds were below last year's levels.
Prices for cottonseed, linseed, peanut, and soybean meals, reflecting the
abundant supplies of domestic feedstuffs, were at comparatively low levels in
March.

Several factors have contributed to the rise in prices of fats and oils
in recent vreeks. These are (1) growing strength in domestic demand resulting
from increases in industrial activity and consumer incomes; (2) a lower rate
of output for lard and greases; (3) higher shipping costs for imports of oil-
seeds and oils, together with some restriction in the volume of imports,
resulting in part from the withdrawal of British vessels from American service;
and (4) Government lard purchases,








Imports increased in February, but January-
February t otal below last year

Although imports of dilseeds and oils were larger in February than in
January, total imports for the first 2 months this year were somewhat below
those of the corresponding period in 1940. Imports of castor beans, palm
oil, and palm kernels for the 2-month period iwre considerably larger than a
year earlier. But a major decline occurred in imports of coconut oil and
copra, apparently because of scarcity of shipping space on the Philippine-
United States run. Imports of tung oil, olive oil, and perilla oil declined
Sto unusually low levels, mainly as a result of hostilities in China and
southern Europe and short supplies of perilla seed in lanchuria and Japan.

Exports of lard and soybeans continue
small; coconut "oil shipped to SiTeria

Lard exports in February, totaling nearly 15 million pounds, vwre
slightly larger than in January but were about 10 million pounds below those
in February last year. The January-February total this year was about 45
percent under that of a year earlier. Cuba, Japan, lexioo, other Latin
America, Finland, and the Soviet Union, in order of importance, were the
principal markets. Over 7 million pounds of lard, and nearly 4 million pounds
of glycerine, were shipped to Japan, which usually does not import these com-
modities, from December 1940 through February 1941. A little over 1 million
pounds of lard were consigned to Vladivostok in February, another unusual
shipment. Also unusual was the export of over 25 million pounds of crude
coconut oil to Vladivostok in February.

Soybean exports have been negligible so far this year. Approximately
2.3 million bushels were exported in January-February last year, chiefly to
the Netherlands and Scandinavian countries.

After April 15, all fats, oils, oilseeds, and fatty acids will be sub-
ject to export license control. Exports of glycerine are already subject to
such control. This action is not expected to interfere seriously with normal
export shipments.

Peanut marketing quotas established

Marketing quotas for 1941-crop peanuts, as provided by Congress in a
recent amendment to the Agricultural Adjustment .ct of 1938, were proclaimed
by the Secretary of Agriculturl April 5. The national quota for 1941 is
1,255,800,000 pounds of peanuts, based on an acreage allotment set by law of
1,610,000 acres and a normal yield factor of 780 pounds per acre. The market-
ing quota will remain in effect only if approved by two thirds or more of the
peanut farmers voting in a referendum to be held April 26. The vote will be
for a three-year period, affecting the crops of 1941, 1942, and 1943.

Under the quota, a farmer vho plants within his peanut acreage allotment
S may market all ho produces without penalty. Peanuts marketed in excess of the
,, farm marketing quota are subject to a penalty of 3 cents per pound. However,


FOS-50


- 5 -







APRIL 1941


payment of t:.e penalty is not required if the exeaes peanuts are delivered to
an agency designated for handling such peanuts. In this case, the farmer will
receive a price for his excess peanuts based on the value of the oil- and meal,
which usually is considerably lower than the market price for edible peanut.

Only peanuts picked and threshed by mechanical means are subject to
marketing quotas. Peanuts hogged off or dug for hay do not come under quotas*
Quotas do not apply to farms on which the measured peanut acreage is one
acre or less

If quotas are approved in the forthcoming referendum, farmers are as-
sured of a loan or diversion program, or both, for peanuts produced within
the quotas, as a means of protecting peanut prices. The loan rate would be
between 5' and 75 percent of parity. If quotas are not approved in the
referendum, the Act requires that no peanut loan or diversion program may
be offered for the 1941 crop.

Approximately 1,611,634,000 pounds of peanuts were picked and threshed
by mechanical means on 1,907,000 harvested acres in 1940, according to pre-
liminary estimates. A large part of the 1940 crop was purchased by coopera-
tives, largely for resale to oil mills under the original peanut diversion
program. That program had the effect of supporting prices for the entire
crop rather than for that portion of the crop produced within quota limits,
as contemplated in the recent amendment to the Act.

OUTLOOK

BACK iOUID.- Prior to the outbreak of war in Europe, prices of
most fats and oils were at low levels, mainly because of in-
creasing. iorld supplies of vegetable and I'arine oils. Foreign
demand for American lard ras weak. Following the outbreak of
war, prices advanced, but most of the gain was lost during the
first 8 months of 1940, when the world demand for fats was great-
ly weakened by the loss of important European markets. Since
then, prices have moved upward in response to improved domestic
demand, reduced output of lard and greases, rising shipping
costs for imported oils, and Governrent lard purchases. Do-
mestic production of fats in 1940, the largest on record, was
equivalent to 90 percent of domestic requirements. An ample
supply of food fats vras produced, but production of certain
soap, drying, and other industrial oils was considerably below
domestic needs.

Production to continue large in 1941

It was indicated in recent issues of this report that production of
lard and greases in 1941 would be 10-20 percent smaller than in 1940 as a
result of reductions in the spring and fall pig crops of 1940 and in the spring
pig crop of 1941. On the other hand, it was indicated that output of vegetable
and marine oils might be increased sufficiently to offset the decrease in pro-
duction of ho- fats. 1'ost of the increase in output is likely to come in the


- 6 -







: Os-50 7-

Sfirst 8 months of the year from the' comparatively large harvest of oilseeds
in 1940. During the latter part of 1941, production of vegetable oils from
domestic materials may be no larger than in the corresponding period of 1940.
Production of fish oils during this period, however, is likely to be some-
what greater than the relatively small output of a year earlier.

First indications as to the.probable size of 1941 field crops are given
in the prospective plantings report issued by the Agricultural Marketing
Service March 18. The acreage indicated to be planted to peanuts is slightly
larger than the 2,390,000 acres planted last year. But the prospective acre-
Z...46.for flaxseed is 2 percent smaller, and that for soybeans is 7 percent
A.fller than a year earlier. Minor changes in acreage such as those indicated
ii.tr -peanuts and flaxseed ordinarily are less important than variations in
yiel4s. Yields for both peanuts and flaxseed were unusually high in 1940.
iAz6uming that yields for these crops would be more nearly normal this year,
and that the acreage intentions are borne out, peanut and flaxseed production
would be smaller than a year earlier. In the case of peanuts, however, it is
' :possible that the total acreage planted may be larger than that now indicated,
A"as a result of production an farms where peanuts have not previously been
.grown.

It was recently announced that provisions of the 1941 Agricultural
Conservation Program will be amended.so as to permit the growing of peanuts
for oil on any part of the cotton acreage allotment which is not used for
cotton production without incurring deductions from'agricultural conservation
and parity payments. It was pointed out that this provision would not af-
fect the operation of peanut marketing quotas if they are approved by growers
in the referendum to be held under the legislation providing for such quotas.
In effect, this means that for every acre by which a farmir underplants his
1941 cotton acreage allotment, he may overplant his 1941 peanut acreage allot-
ment for the purpose of selling such peanuts at their market value for crush-
ing, and still qualify for full conservation and parity payments under the
Agricultural Adjustment Administration Farm Program.

A large part of the soybean acreage is harvested for hay. With favor-
able price conditions, the proportion harvested For beans could be increased
considerably. Apart from that consideration, weather conditions during the
growing and harvesting season exert a marked influence on the outturn of the
crop. Soybean yields were unusually low last year as a result of growing
conditions which probably will not be duplicated this year. Hence, it is
quite possible that soybean production will be increased even though the
planted acreage may be reduced.

Further improvement in demand indicated

Domestic demand for fats and oils is expected to show material improve-
.nbt in the next several months as industrial activity expands and consumer
S incomes are increased. This improvement is likely to be most pronounced dur-
:. g the second half of 1941 when many new defense plants will come into opera-
i' n 'iae The demand for domestic fats may be further strengthened as a result
i. 4- rising shipping. costs, reduced supplies, and higher prices for imported







APRIL 1941


fats. The effective foreign demand for fats probably will continue weak,
however, so long as the blockade of continental Europe is continued. The
weakness in foreign demand will tend to prevent prices in surplus-produoing
areas from rising materially, and thus will have the effect of limiting any
rise in domestic prices for such imported fats as are freely available.

Government purchase program to
support butter ard lard prices

In an effort to bring about increased supplies of certain livestock
products to meet probable domestic and European needs in the next few years,
the Department of Agriculture on April 3 announced a new food program for sup-
porting and stabilizing prices and increasing production of hogs, dairy prod-
ucts, poultry, and e^gs. It was announced that the commodity-loan program
for corn, which has had the effect of stabilizing corn prices, would be con-
tinued. The ner program will extend until June 30, 19453

Average prices of packer and shipper hogs and of 92-score butter at
Chicago are to be supported at approximately 9 cents and 31 cents per pound
respectively, with due allowance for seasonal price changes. Supporting the
price of hogs at about 9 cents will have the effect of strengthening the hog-
corn price ratio and thus of bringing about a greater increase in hog produc-
tion than would have occurred otherwise. This increase probably will be re-
flected in the fall pig crop of 1941, and in hog marketing in the spring and
sumnir of 1942, The decrease in pork and lard production in the next several
months may be less than had been expected previously because the new food
program is expected to result in an increase in the average weights of hogs
marketed. Since the price of butter in liarch was near the announced level,
little change in dairy production, aside from the usual seasonal changes and
a tendency toward increased production already under way, is now anticipated.

The average price of packer and shipper hogs at Chicago in early April
was about 7.7 cents per nound. in supporting this price at approximately the
9-cent level the Government will purchase certain quantities of pork products
and lard, with the relative distribution of purchases at present depending
largely on Rritish requirements, Red Cross export requirements, and domestic
relief needs. The Government lard purchases are expected to strengthen lard
prices during t-he com.ling year. Prices of cottonseed oil and other domestic
edible oils and fats probably iill also rise, but in view of the fact that
lard prices during the past 2 years have been abnormally low in relation to
prices of competing oils and fats, the rise in'prices of competing products may
be considerabl- less pronounced than the increase in lard.

FACTORY COU'SUmIPTIO' OF FATS AFD OILS BY CLASSES
OF PRODUCTS, 1938-4C

Data for the years 1938-40 on factory consumption of fats and crude oils
by classes of products, as reported by the Bureau of the Census, I/ together

1/ Factory Consumpt-i'on of Animal and Vegetable Fats and Oils by Classes of
Products for 1940, preliminary report, Washington, March 15, 1941. Data for
earlier years are given in Animal and Vegetable Fats and Oils, an annual re-
port of the Bureau of the Census.


- 8 -






-9-


with the estimated total apparent disappearance, 2/ are given in this report
-la continuation of similar statistics, beginning 1931, *nblished in the April
1959 issue of The Fats"and Oils Situation.

Consumption in 1940, in general, was characterized by increased'use of
domestic fats and oils in all classes of products, and by decreased use of
imported items in all categories except miscellaneous products. Material gains
in domestic production of lard, talldw,: greases, soybean oil, and linseed oil
ere chiefly responsible for this'situation, although rising costs for ocean
S shipments for imparted oilseeds andb-ils'and difficulties in obtaining sup-
.. .plies of some imported items were contributing factors.

:.Comparatively little lard enters into manufactured products. Total
:..lard consumption in 1940 amounted to about 1,926 million pounds compared with
1627 million pounds in 1939, and 1,420 million pounds in 1938. Factory
utilization in 1940 totaled only 30 million pounds, of which more than half
was in the production of compounds and most of the remainder in the .produc-
tion of oleomargarine and other edible products. Approximately 645,000
pounds of lard were used in the manufacture of soap in 1940 compared with
50`000 pounds a year earlier. Because of the unusually low prices prevailing
f.t lard during most of 1940, additional unreported quantities apparently
were denatured and sold.as grease to soap makers.

The most notable increase in utilization of soap fats in 1940 occurred
in inedible tallow and greases. The use of these fats showed gains of 137
million pounds in soap and 18 million pounds in miscellaneous products.

r Approximately 339 million pounds of soybean oil entered into the manu-
facture of food products in 1940 compared with 305 million pounds in 1939.
In addition, 37 million pounds were used in the manufacture of paint, varnish,
linoleum, oilcloth, and printing ink compared with 28 million pounds a year
earlier. Utilization of soybean oil in soap and in miscellaneous products,
totaling 18 and 17 million pounds respectively, also was materially larger
than a year earlier.

Consumption of linseed oil in the drying industries was increased
moderately in 1940. The use of linseed oil obtained from domestic flaxseed
was considerably greater than in 1939, but the use of oil from imported flax-
seed was reduced.

Factory utilization of corn oil and oleo oil, chiefly in food products,
also was expanded in 1940. But with decreased output, the consumption of
cottonseed oil, peanut oil, edible tallow, and oleostearine, in food products,
was reduced. Consur.ption of fish oil and whale oil in soap, similarly, .'as
reduced, although a moderate increase in the use of fish oil in the drying
industries was reported.

Coconut oil is the most important of the ii:ported fats. Consumption of
this oil and of babassu oil in food products was reduced in 1940, but utiliza-
tion in soap was increased. Soap accounted for 75 percent of the total factory

/I The Fats and Oils Situation, February 1941.







APRIL 1941


- 10 -


use of coconut oil in 1940 and 74 percent of the total for babassu oil. Com-
paratively little palm-kernel oil was consumed in 1940. About the same quan-
tity was used in food products a in 1939, but utilization in soap, formerly
the chief outlet for this oil, was negligible.

A sharp decrease in palm-oil consumption occurred in 1940. The prin-
cipal reduction was in food products, but the use of this oil.in soap also
was reduced. :- 'oever, moderately larger quantities were used in the tin and
terneplate industry than in 1939. Soap accounted for 54 percent of the total
factory use of palm oil in 1940, food products 23 percent, tin and terneplate
20 percent.

Because of unusually high prices for tung oil and perilla oil result-
ing fror. difficulties in obtaining supplies from th Far East, consumption
of these oils in the drying industries was sharply reduced in 1940. Reduc-
.tion in use of these oils accounts in-part for the increased use of linseed,
soybean, and fish oils for drying purposes, and was mainly responsible for
the considerably larger consumption of castor oi-1 in 1940 than in 1939.
The quantity of castor oil used for other purposes was not greatly changed
in 1940.





















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Table 3.- wholesale prices of fats and oils: Index numbers, March 1939
and 1940, January-MIarch 1941
(1924-29 a 100)


Group


s March
; r


Jan.


1Y,1


Eight domestic fats and oils 1/ ...: 78
Eight domestic fats and oils ...... 55

All fats and oils (27 items) .....: 58
Grouped by origin
Animal fats ................: 54
Marine animal oils ..............: 68
Vegetable oils, domestic ........s 68
Vegetable oils, foreign ........: 76
Grouped by use i
Butter,.u.na.justed ..............: 54
Butter, adjusted 2/, ............: 52
Lard ...........................: 50
Food fats, other ...............: 68
Soap fats .......................: 67
Drying oils .....................: 78
Miscellaneous oils ..............: 65

1/ 1910-14 = 100. 2/ Adjusted for typical


65

60
89
70
90

64
62
45
67
65
103
100


Xra.


68 72


87
99
71
105

70
68
54
78
75
99
..8B


seasonal variation.


Table 4.- Prices of specified oil-bearing materials, March 1939 and 1940,
January-March 1941


:Unit .arch
: 1939 : 1940 : Jan.
: a Dol. Dol. Dol.


51.00

1.73 1.71
28.25 1/26.20


2.08

5.25

1.14


1.78

5.12

1.01


Castor beans, Brazilian, :
ship't.,c.&f., Ieew York .: Ton :
Copra, bags, f.o.b. :
Pacific Coast ...........:100 lb.: 1.82
Cottonseed, Dellas .......: Ton : 23.37
Flaxseed, No. 1, :
Minneapolis .............: Bu. : 1.96
Peanuts, shelled, :
Runners No. 1, S.E. rills:100 lb.: 5.00
Soybeans, No. 2 Yellow, :
Chicago ................ Bu. : .88


1941
: Feb.
Dol.

51.00

1.82


1.75

5.25

.95


Mar.
Dol.

55,25

2.38


1.80

5.30

1.04


Compiled from Oil, Paint and Drug Reporter, Daily Trade Bulletin (Chicago), Daily
Market Record (Minneapolis), and reports of the Agricultural Marketing Service.
1/ Preliminary.







>4


Item


L Z 7


*


----


~ ~~~~--~~~- --


--


- 16 -


19540 5


m m




F'

108-00


1? -

Table 5.- Price per ton of specified oil-cake meal, March 1939
and 1940, January-March 1941


Mar.


:****;**--------- ~f
Item 1/ :
---


ira mdal, Los jpgeles *....:
stonaeed meal, 41 percent ,
Wt*tein, Memphis ...........:
loqsnaeed meal, 41 percent
',&ein, Chicago ...........:
eed meal, 37 percent
2 ein, 11 inneapolis .......:
i.A.ed meal, 34 percent s
*1A in, New York ..........
Ailtt meal, 45 percent
br ae.n, f.o.b. S.E. mills .:
Q "iempn meal, 41 percent
,p..i.'iin, Chicago ...........:


1939


Dollars

23.00

22.20

28.15

38.50

2/40.00

20.50

24.45


1940


Dollars

19.60

3b.25

36.20.

30.40

35.50

32.69

30.45


Jan.

Dollars

Z2.40

27.85

34.50

S.29.50

25,40

21.94

. 29.75


1941

Feb.

Dollars

24.40

24.45

31.25

28.40

23.90

20.69

26.60


CoNAiled from records of the Agricultural Marketing Service.
I/I jagged, carlots, except for peanut meal.
/ 50-32 percent protein.























I .


Mar.

Dollars

25.25

24.45

30.75

27.40

23.10

20.88

26.85


L




I, .$R3


. *. .


19 1 ": ." .: '

Table 6,'* TUnit*t States, February 1939 and 1940, P e I


Item


Iaeio%4
14total
.;ot&3


..* I .A 1 1 .
,'I ; jltrs "" ~ii; r i


S1969 :1940


...a.a... .. *. 1 9 4.. ... .. .....
*. 4D "-: Q a w 0. 44 F
*....,.... ... .. 2'. 7 6.8 29,31 .t .
a a--. a: a. VI -3.. ,j -1 '"
V ".


O Ea~ o ue e -' "*
Cisood cii*.... bb..es *r. .'.... I

ttd, -*euti *.. *........;
O t.tac" ,,;............s
ie.otearine .............:

Tr ttal Mfiial ........s

Gettonseed oil ,........,'gi
Soybean oil .............: .
Peanut oil .m.u.......m ..u.s
S Corn oil .........,.....:
S Vegetable gum ............
S Cottonseed stearine a......
Soybean stearine .........:
Total domestic
vegetable .........

Cooonut oil ..............:
Babass oil ............. s
Palm-kernel oil .........:
Total foreign
vegetable ..........
S Total fats and oils .:

Milk ............ .......
Salt and other :
miscellaneous ...........:


218
115




9,412
--S.



4,395
194'
62


14063

14,065


1,3371 i
241 S*
333 776
105 4w.
-~- ,14


-" --- ... ..." "... 7""--. "" ? .

8, :~."; 649 "
158 182
89 34
1 -
1
-" "


19,100


5,295 1,841
1,168 770
44 ---

6,507 2,611
22,334 23,747


5,422

1,256


Compiled from Internal Revenue records
1 Preliminary.
2/ Includes manufacturers' returns not
_/ Total of unrounded numbers.





/


5,761

1,332


and Internal Revenue Bulletin.

available for other reports.


q


UNIVERSITY OF FLORIDA

3 1262 08905 1253


.......