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_00056
Classification:
lcc - HD9490.U5 A33
ddc - 380.1/41385/0973
System ID:
AA00005305:00056

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text









BUREAU OF AGRICULTURAL ECONOMICS
UNITED STATES DEPARTMENT OF AGRICULTURE

S-AAPRIL 1942


IssuE:
'T1ON OF FATS AND OILS BY CLASSES
r PRODUCTS, 1912-41


K4 L UTILIZATION OF FATS AND OILS (CRUDE BASIS) IN FOOD AND
INDUSTRIAL PRODUCTS, UNITED STATES. 1912-41
f:!' POUNDS


I 10 ---- Total
4N 11\


1912


1916 1920 1924 1928 1932 1936 1940


S a v I 1%.r I


A. II.. DEPT T O AICUL
, ,: .IL'S. DEPARTMENT OF AGRICULTURE


DATA FOR 1941 ARE PRELIMINARY
NEG. 39761 BUREAU OF AGRICULTURAL ECONOMICS


TOTAL'UTILIZATION OF FATS AND OILS IN THE UNITED STATES INCREASED
IN 1941 TO THE RECORD LEVEL OF 10,942 MILLION POUNDS 1,175 MILLION
POUNDS (12 PERCENT) ABOVE THE PREVIOUS HIGH REACHED IN 1940. UTILI-
ZATION IN.FOOD PRODUCTS WAS ONLY 4 PERCENT GREATER THAN IN 1940, BUT
"'T.L.IZATION IN INDUSTRIAL PRODUCTS, REFLECTING THE'MARKED GAIN IN
M'ANUF4CTUTSING AND BUILDING ACTIVITY, WAS 30 PERCENT GREATER.
*1^


. . ':.:..".: .. "...... :1.'.


I .


._,d







Table 1.- Price per pound (? afgeeifle6 fats, dils, and glycerin,
March 1940 and 1941, January-tarch 1942

Item : Nr. 1 194 .
......-....... ................:; 1lQ9A(r,-i.r-rj.':T'&r


:Cents Cents

Butter, 92-score, Chioaco ..............3..........28.0 50.8
Butter, 92-soore, New York ..................... 28.6 31.6
Oleomargarine, dom. veg., Chicago ................:15.0 14.5
Compounds (animal and veZ. cooking fats), Chicaro.: 9.6 11.1
Lard, loose, Chicago ............................: 5.0 F.?
Lard, prime steam, tierces, Chicago ..............: 5.9 7.0
Lard, refined, cartons, Chicago .................: 6.5 7.3
Oleo oil, extra, tierces, Chicago ................: 7.1 7.2
Oleostearine, 'bl., .oY. .........................: 6.3 %.8
Tallor, edible, Chioco .........................: 4.9 6,0
Corn oil, crude, tanks, f.o.b. mill, .............: F.I 6.6
Corn oil, refined, bbl., N.Y. ....................: 8.8 9.1
Cottonseed oil, crude, tan'-s, f.o.b. S. E. mills .: 5.9 C.4
Cottonseed oil, p.s.v., tan'- cars, !.Y. ..... ....: 6.7 7.1
Peanut oil, crude, tan!rs, f.o.b. mills ,..........: 6.6 6.2
Peanut oil, don. refined, bbl., N.Y. .............: 9.6 8.8
Fo-bean oil, crude, tank care, ridvestern mills ..: 5.A C.l
Sorbean oil, dem., crude, dnums, '.Y. ............: 7.2 7.9
Soybean oil, refined, drums, N.Y. ..............: 8.4 8.f
Dabassu oil, tancs, f.o.,. mills, pacificc Coast ..: --- 6.8
Coconut oil, crude, tanks, f.o.-. Facifin Coast 1/: 5.8 6.8
Coconut eil, edible, drums, :.Y. .................: 8.f 8.8
Olive oil, edible, drums, N.Y. ,..................:26.0 46.9
Olive oil, inedible, drums, I.Y. ................:12.8 30.8
Olive-oil foots, prime, drums, I.Y. ..............: 8.3 11.5
Palm oil, Iiger, crude, drums, I'.Y. I/ ...........: 7.6 7.7
Palm oil, Sumatra, tan!:s, i:.Y. I/ .......... .... 6.0 ?.o
Rape oil, drums, :.Y. ........................... ..:15.7 12.7
lRae oil, blown, drums, N.Y. ................. .....:17.2 17.5
Teaseed oil, crude drums, N .......................:12.0 17.4
Tallow, inedible, Chicago ........................: 4.6 5.4
Grease, A white, Chicago .......................: 4.6 5.5
'enhaden oil, crude, tanks, f.o.b. Baltimore .....: 4.5 5.4
Sardine oil, crude, tanks, Pacific Coast .........: 5.0 6.9
T'hale oil, refined, bleached winter, drums, U.Y. .: 9.5 9.5
Linseed oil, raw, tank carn, !'inrePnolis .........:10,Z 9.0
Linseed oil, ra',, drums, carlots, N.Y. ...........:10.7 10,0
Perilla oil, drums, N.v. .........................:21.0 18.2
Oiticica oil, drums, N.Y. ........................:19.8 17.1
Tung oil, drums, N.Y. ..........,................a27.4 28.6


Ceit-

35.2
35.4
18.5
16.8
11.0
10.7
12.9
11.8
10.
9.F
12.
15.4
12.6
13.7
13.0
16.4
11.4
12.8




75.7
58.4
18,9
12.4

15.4
18.0
30.0
9.1
9.2
8.2
8.4
11.1

11,5
24.2
24.1
39.0


Certs

34.5
34.8
19.0
17.1
lih
12.2
13.4
13,0
10.8
9.7
12.5
15.5
12,6
13.9
13.0
16.8
11.7
13,0
14.2



75.7
59,3
19.6
12.2

15,5
18.2
30.0
9,3
9.6
8.6
8.9
11.1
11.1
12.0
24,F
25.2
40.1


Cents

34.4
34.9
19.0
17.0
116I
12.7
13.5
13,0
10.5
9,8
12.8
15.5
12.6
14.0
13.0
16.9
11.8
13.0
14.2

--a


75.7
59.3
19.8
12.2

15.5
18,2
30.0
9.3
9.1
8.9
8.9
11.1
12,4
13,4
24.6
25.2
40.2


Castor oil, No. 3, bl., r'.Y. .................. :12,8
Castor oil, dehydrated, drums, carlots, N.Y. .....:18.1
Cod-liver ail, med. U.S.P. bbl., N.Y. (dol.ner bbl$33.5
Cpd oil, Newfoundland, drums, N.Y. ...............: 9.0
Glycerin, soaplye, 80 percent basis, tanks, U.Y. .: 8.0
UComiile'd" from il"Y'iTPifnt" a'nd V'iru Repo'rtr,' T'1ie YTa'ional


9.8 12.5
13.2 16.9
71.0 82,1
9.0 10.8
7T. 11.5
Provisionier,


of the Agricultural I.ar'eting A-dninistration and Pureau of Labor Statistics.
Prices quoted include excise taxes and duties where apnliesble.
I/ Three-cent processing tax added to price as originally quoted.


13,4
17. C
78.5
11.3
11.5
and


13.8
18.3
78.5
11.3
11.5
reporETs


APRIL 1942


- 2 -


T:
Al
4
:::, Odm







os0-61-62 3 -


THE FAT S. AND ILS S ITUATI ON


Summary

Prices of fate and oils probably will not change greatly in the next

few months. Most items except butter and linseed oil, prices of which are

not restricted, are now at maximum levels specified under Office of Price

Administration Schedules 53 and 92.

Following the announcement in late March that the price of 92-score

butter would be supported bythe Department of Agriculture at 36 cents per

pound at.Chicago, the wholesale price advanced more than 2 cents. The higher

level of butter prices is expected to stimulate production of milk and also

to result in some diversion of the flow of milk from condenseries and cheese

factories to creameries, thus increasing the supply of butter.

Prices of flaxseed and linseed oil have advanced materially in recent

weeks, reflecting strength in the demand for paint oils, uncertainty con-

cerning imports of flaxseed, and announcement of a supported price of $2.25

per bushel for Canadian flaxseed in store at Ft. William. Rising prices in

the domestic market were followed early in April by a further increase in

the price of Argentine flaxseed. The recent order of the War Production

Board restricting new building is expected to reduce private use of linseed

oil during the latter part of 1942, but increases in war demands for paint

and varnish oils will tend to offset this influence on prices.

In early April an arrangement was approved by the President and by

the Prime Minister of Canada to increase the production of oil-bearing crops

in the United States and of oats, barley, and flaxseed in Canada. Without

changing.the existing tariffs, this arrangement provides for more effective






APRIL 1942 4- .

utilization of the joint agricultural resources of the two countries to meet

wartime needs.

During March, the War Production Board issued orders restricting the

utilization of coconut oil, babassu and other palm-kernel oils, palm oil, and

rape oil. Early in April, additional imported oils and oilseeds were placed

on the list of commodities which private Importers may not import without

special permission from the War Production Board. Among these were babassu

nuts and oil, castor beans and oil, cashew nut-shell oil, and oiticica oil,

Restrictions previously had been placed on private imports, of coconut oil and

copra, palm oil, tung oil, and rape oil, Restrictions do not apply to imports

by governmental agencies.

-- April 17, 1942

R1EVIW OF RECENT SELOPMENTS

BACKGROUND.- With large world supplies available, prices of
fats and oils were low in 1939. Prices advanced that fall,
following the outbreak of war in Europe, but declined in the
spring of 1940. During the first half of 1941, prices
advanced sharply, reflecting a tight shipping situation for
imported materials, marked improvement in domestic demand,
and Government purchases of lard for export. Prices tended
to level off during the second half of 1941, partly because
of a temporary improvement in shipping and partly because of
.price-control measures. In the first quarter of 1942, how-
ever, further advances were made, notably by lard and linseed
oil. Maximum or ceiling prices for fats and oils were first
established on December 13, 1941. On January 2, 1942, the
maximum price schedule was revised upward. On February 4, a
further increase in the maximum price of lard was made, and
the ceiling on linseed oil was removed.

Prices of Flaxseed and Linseed Oil
Rise Sharply in March
Flaxseed prices advanced rapidly during March. Prices of linseed oil
also rose. No. 1 flaxseed at Minneapolis, quoted at about $2.35 early in
the month, sold for more than $2.70 by the end of the month--a rise of about
15 percent. Linseed oil was priced at 11.0-11.2 cents per pound in tank care
at New York (zone 3) at the beginning of the month, and at 13.0-13.2 cents
per pound at the end. Possibly in reflection of the limitations imposed by
the 'ar Production Board on construction, prices of flaxseed receded somewhat
early in April. Linseed oil prices, however, advanced slightly further.







ros-61-62


-5-


Under the Price Control Act, no ceiling may be imposed on flaxseed
prices below 110 percent of parity. On March 15, this level, as applied to
prices received by farmers, was $2.75 per bushel. The average price received
by farmers for flaxseed on March 15 was $2.37. On the basis of a normal
margin between terminal market prices and farm prices, the average price
received by farmers at the end of March would have been about $2.50 per bushel.

Strength in the demand for paint oils,-uncertainty concerning imports
of flaxseed, and the announcement of price support for Canadian flaxseed on
the basis of a price of $2.25 per bushel for flaxseed in store at Ft. William,
contributed to the marked rise in domestic flaxseed prices during March. On
April 2, the Argentine Grain Board raised the price asked for flaxseed for
export, f.o.b. Buenos Aires by 15-1/8 cents per bushel (United States currency).
Since February, the freight rate between Buenos Aires and New York was raised
approximately $5 per ton, or 13 cents per bushel, and the war-risk insurance
rate by 6 cents per bushel-from 4 cents to 10 cents. Thus the total increase
since February in the cost of Argentine flaxseed delivered at New York has
been about 34 cents per bushel.

New Support Price Announced for Butter

The Secretary of agriculturee announced on March 28 that the price of
92-score butter iLn ar..;ei1 tots at Chicago would be sppozrt-d at 36 cents
per pound. The in.e:k-e. -.' e promptly rose to the new suL.r-tL lsvul.. Earlier
in March it had rouT, d Lout .en 34 and 34-1/2 cents per pound, and averaged
34.4 cents per pound for the month compared with 34.5 cents per pound for
February.

Lard Prices at New Ceiling

Lard prices rose throughout February, following the establishment on
February 4 of a new higher ceiling. Early in March they reached the new
maximum level where they have remained. The average price in March, 12,7
cents per pound for prime steam lard at Chicago, in tierces, was about 4 per-
cent above the average price of 12.2 cents in February.

Prices of Most Fats and Oils Unchanged
at Maximum Levels

March prices of fats and oils other than lard and linseed oil varied
little from February levels. There was a slight decline in the price of
oleostearine, while prices of castor oil and dehydrated castor oil rose mod-
erately. Most prices are now at or near the ceilings. The index of prices
for 27 leading fats and oils in March stood at 98 percent of the 1924-29
average, up one point from February largely because of the rise in lard and
linseed oil prices.

Use of Coconut Oil and Other High
Lauric Acid Oils Restricted

On March 20, the War Production Board issued General Preference Order
M-60 affecting coconut oil, babassu oil, palm-kernel oil, and other oils with
a lauric acid. content of 35 percent or over, as well as copra and other seeds
and nuts from which high lauric acid-oils are obtained. The order limits the







APRIL 1942 6 -

types and rates of uses of these oill, pP4 requires a certain proportion of
inventories to be set.aside and held.

Utilization of high lauric acid oa,- for margarine. shortening, or
cooking fat is prohibited. No processor-.ay saponify these oils in any month
in a quantity in excess of 75 percent of the monthly average quantity saponi-
fied in 1941. On end after June 1, 1942, no person may utilize these oils in
any process which does not produce'glycerine, nor in hany manufacture or pro-
cess in which glycerine is produced where the amount of.glycerine (whether
free or combined) remaining-in the product exceeds 1.5 percent calculated on
an anhydrous soap basis or where the remainder of the glycerine-is not at
least 90 percent recovered." But during April and May any person may use high
lauric acid oils in processes which do not produce glycerine (except for mar-
garine, shortening, or cooking fat) at not m6re than"50 percent of his average
monthly rate.during 1941.

The purpose of these regulations is to obtain a larger output of
glycerine. Large quantities of glycerine are needed for the war, and high
lauric acid oils yield a relatively high proportion of glycerine when
saponified.

The order also restricts the processing or preparation of high lauric
acid oils to quantities necessary to meet normal production schedules of manu-
facturers who process for permitted uses.

Every person who had more than 30,000 pounds of high lauric acid oils
(including oil in stocks of copra or other nuts and seeds) at the close of
business on March 19, is required to set aside and hold 25 percent of his
stocks on that date. The purpose is to set up a reserve supply which may be
drawn upon, at the direction of the Director of Industry Operations, whenever
it is needed in war production.

Use of Palm Oil Restricted

Under General Preference Order M-59, issued by the War Production
Board March 20, the use of palm oil has been limited since April 1 to two
types of manufacturing:

(1) The manufacture of tin plate, terneplate, long
terneplate, steel sheets, steel strip and black
plate.

(2) Any manufacturing process in which glycerine is
produced where the amount of glycerine (whether
free or combined) remaining in the product does
not exceed 1.5 percent calculated on an anhydrous
soap basis and where the remainder of the glycerine
is at least 90 percent recovered.

The order also restricts the processing or preparation of palm oil to quan-
tities necessary to meet normal production schedules of manufacturers who
process for permitted uses, and prohibits sale or delivery except to dealers
or persons using the oil for permitted uses.







POS-61-62 7 -

Everyone who had more than 30,000 pounds of palm oil at the close of
business on March 19 was required by the order to set aside and hold 20 per-
cent of his inventory on that date. As in the case of the high lauric acid
oils,..the purpose is to set up a reserve supply.

Certain Restrictions on the Sale of Tung Oil Removed

Manufacturers who have stocks of tung oil on hand that they cannot use,
because General Preference Order M-57 restricts the uses of tung oil, may now
sell their stocks to manufacturers who need the oil for a permitted use. This
ruling was made by the Var Production Board on March 20 in the form of amend-
ment No. 2 to the general preference order. Restrictions on the use of tung
oil remain the same as before.

As the result of the amendment, paragraph (c) of order M-57 now reads
as follows!

"(c) Restrictions on Use of Tung Oil. After the effective
date of this order no person shall use or process any
Tung Oil, except upon the following categories of
orders:.:

(1). Defense orders having preference rating of A-2
or better.

(2) Orders placed by Defense Supplies Corporations.

"(3) -Orders for the manufacture of can linings for cans
to contain food products for human consumption.

(4) Orders for the manufacture of outside can coat-
ings where wood oil is essential to withstand
normal -food processing.

(5). Orders for uses to comply with Underwriters' Regu-
lations, health, Sanitary or Safety Regulations,
or laws issued by Government authority, provided
the pertinent provisions of such laws or regula-
tions-were in.effect both on December 1, 1941, and
on the date of such use and specifically require
the 'ise of Tung Oil or a product required speci-
ficelly to be made from Tung Oil."

Use of Rapeseed Oil Rpetricted

The War Production Board on March 23 issued General Preference Order
M-77 restricting the use of rapeseed oil. After April 1, 1942, except as
specifically authorized by the Director of Industry.Operations, no person
shall use or consume rapeseed oil except in the manufacture of the following
products:

(1) Marine engine oils, heavy machine engine lubricat-
ing oils and pneumatic tool oils.






APRIL 1942


(2) Factice for compounding rubber.

(3) Blown rapeseed oil.

Provision also was made for setting aside a certain percentage of
supplies on hand for inventory reserve. The sale or delivery of rapeseed oil
without specific authorization by the Director of Industry Operations is pro-
hibited except sale or delivery to a dealer or manufacturer using such oil in
the specified products.

Additional Oils and Oilseeds Placed.
on List of Strategic Materials

Additional oils and oilseeds were placed on list A of strategic mater-
ials in amendment No. 4 to General Imports Order M-63, issued by the War
Production Board on April 8. These oils and oilseeds are as follows! Babassu
nuts and kernels, babassu nut oil, cashew nut-shell oil, castor beans, castor
oil, cohune nuts and kernels, and oiticiea oil. An earlier amendment, eo. 2,
effective in January, had put copra, coconut oil, palm oil, tung oil, and rape-
seed oil on the list.

The order on imports (originally effective December 28, 1941I proabitt
any person other than the Metals Reserve Company, the Defense Supplies
Corporation, or any other governmental department, agency or corporation,
from making contracts or other arrangements for importing strategic materials,
except by written authorization of the Director of Industry Operations. The
order further prohibits private owners and consignees of a strategic material
from disposing of any interest, from processing or changing the physical con-
dition, or from transferring possession or changing the location of such
material except to and from the port of entry to the place of initial storage,
without written authorization by the Director of Industry Operations.

Purchases of Fats and Oils and Related Products
by the Agricultural Marketing Administration

Data on purchases of fats, oils, oilseeds, and their products by the
Agricultural Marketing Administration (formerly by the Surplus Marketing
Administration) are presented in table 2 below. Purchased materials may be
used for export under lend-lease and for distribution through relief channels.
The table shows totals for the period from March 15, 1941, when purchases
began, to the end of the year, and totals for January 1-March 28, 1942,
together with weekly figures for March.

More lard was purchased than any other fat or oil--326 million pounds
in 1941, and 143 million pounds during the first 3 months of 1942. Nearly 27
million pounds (450,000 bushels) of soybeans and about 20 million pounds of
soybean flour were bought in 1941. Smaller quantities of oleo oil, vitamin A
concentrate, butter, oleomargarine, shelled peanuts, seed peanuts, and peanut
butter were purchased during the year. Over 8 million pounds of butter were
bought during the first 3 months of 1942 and more than 22 million pounds of
edible linseed oil were purchased in January.


- 8 -







Fos-61-62 9 -

Table 2.- Purchases of fats, oils, and related products by the
Agricultural Marketing Administration, specified periods

: 1941 : 1942
Item :Mar.-Dec.:Jan. 1 to: Week ended
: I/ : Mar. 28 : Mar. 7 Mar. 14 : Mar. 21 : Mar. 28
:1,000 lb. 1,000 lb. 1,000 lb. 1,000 lb. 1,000 lb. 1,000 Ib.

Lard .............: 326,209 142.994 10,977 4,725 8,976 9.150
Oleo oil .........: 2.032 632 -- -- -
Tallow, edible ... --- 685 -- 168 352 165
Fish-liver oil -
Vitamin A ......: 107 160 -- --- --- 127
Butter ...........: 150 ,8324 1.591 1,308 -- 2,238
Oleomargarine .... 1,129 -- -- -- -
Shortening .......: --- 1,344 --- 1,344 -
Soybeans .........: 26,980 ---- -- -- -
Soy flour ........ : 20,230 ---- --- -- --
Peanuts, shelled .: 6,011 -- -
Seed peanuts .....: 60 --- --
Peanut butter ....: 3,104 2,624 -
Edible linseed oil: --- 22,400 -- -

Compiled from reports of the Agricultural Aarketing Administration.
I/ March 15-December 31.

Expanding its purchase program, the Agricultural Marketing
Administration recently asked packers operating under Federal inspection to
offer for sale to the Federal Surplus Commodity Curporation at least two
thirds of their lard production during the next 3 to 6 monLhz. This action
has been taken to assure the availability of sufficient quantities of lard
to meet lend-lease requirements during the late spring and early summer
months..

Prices of Loose Lard at Chicego,
January 1 20 to March 1942

A ser'-s of monthly average wholesale prices of loose lard at Chicago
is presented fcr the first time in table 5 of this report.

DEVELOPMENTS AFFECTING PRODUCTION GOALS

Joint United States-Canada Oil Crop and
Coarse Grain Agreement Announced

Approval by the President of an arrangement affecting agriculture which
was recommended by the Joint Economic Committees of Canada end the United
States was announced from the White House on April 10. The arrangement also
has been approved by the Prime Mirister of Canada. This arrangement provides
for increasing the production of cil-bearing crop? in the United States and
oats, barley, and flaxseed, in Canada to meet wartime needs of both countries.
Without changing existing tariffs, the arrangement provides for more effec-
tive utilization of the joint agricultural resources of the two countries.






APRIL 1942 -10-

Both nations are confronted by a shortage of fats and oils due to the
loss of imported supplies, increased wartime requirements and-the necessity
of supplying substantial quantities to our allies. The increase in the
acreage of oats and barley in Canada will not only provide more adequate
feed supplies for the expanding livestock program of Canada, but will make
possible a greater expansion this season of soybean production in the Corn
Belt by permitting crop acreage that would otherwise be used for feed grain
production to be shifted to soybeans without impairing feed resources.

In order to bring about the desired increases in production, the
Canadian Government has adopted a definite program to encourage wheat growers
to shift surplus wheat land into oats, barley, and flax. The arrangement
further strengthens the oil crop production goal program already set up in
the United States.

Terms of the agreement follow:

WHEREAS, The United States and Canada are confronted by a serious
shortage of fats and oils due to inability to obtain
customary imports owing to war operations and the shortage
of shipping, increased wartime requirements, and the
necessity of supplying substantial quantities of these
products to the United Nations, chiefly the United Kingdom
and the Union of Soviet Socialist Republics; and

WHEREAS, The United States and Canada, in addition to meeting their
own expanded requirements, have each undertaken to supply
the United Kingdom with extensive quantities of livestock
products involving the necessity of increasing the supplies
of feed grains; and

WHEREAS, An increased supply of oil can be obtained by expanding
the acreage of soybeans in the United States and of flax-
seed in Canada; and

WHEREAS, A material increase in feed supplies can be obtained by
expanding the acreage of oats and barley in Canada; and

WHEREAS, The facilitating of such a program of expansion would con-
tribute to the joint war effort of the two countries, and
at the same time encourage a more effective use of their
respective resources;

THER FORE, The Joint Economic Committees of Canada and the
United States recommend:

A. That the Governments of the two countries, through their
appropriate departments or agencies, undertake the follow-
ing:

(1) The United States to increase its acreage of oil-
producing crops with the object of alleviating the
impending shortage of oils in both the United States
and Canada.







0os-61-62 11 -

(2) Canada to increase its acreage of flaxseed to provide
as large a volume as possible for domestic needs and
an excess to offset in -"art the reduction in North
'" American' imports of vegetable oil and oil seeds.

(3) Canada to' increase its acreage of oats and barley with
the object of obtaining adequate supplies' of feed
grains for the expanded livestock program of Canada
and supplementary supplies for the United States.

B. That in order to encourage such a program, while at the
same time providing necessary assurances in the matter of
market outlets, the"respective Governments agree, effective
from r.ext autumn, that:

(1) Canada shall facilitate the delivery in the United States,
at the then current United States prices, of whatever
quantity of flaxseed, oats, and barley Canada may be in a
position to supply;

(2) The United States shall not impose additional
restrictions on the importation of flaxseed, oats,
and barley moving from Canada to the United States;

(3) The United States shall facilitate the sale to Canada,
at the then current United States prices, of whatever
quantity of vegetable oils or vegetable oil seeds the
United States may be in a position to supply;

(4) Canada shall not impose additional restrictions on the
importation of vegetable oils or vegetable oil seeds
moving from the United States to Canada.

Farmers Urged to Substitute Flaxseed
and Soybeans for Oats and Barley

The Department of Agriculture on March 7 urged farmers who grow oats
and barley as cash crops to substitute soybeans or flaxseed for these crops
wherever possible. This is an additional step designed to bring about
further increases in domestic vegetable oil production to supply expanded
war needs, and replace supplies formerly imported.

The suggestion to substitute these oil crops applies to areas where
oats and barley ere grown as cash crops, and does rot apply where these grains
are needed as nurse crops for new grass and legume seedings.

The request to substitute soybeans for oats and barley follows other
measures in a program to encourage greater vegetable oil production. These
measures include:

(1) A program to assist farmers in obtaining soybeans and peanuts
for seed.






APRIL 1942


(2) A price supporting purchase and loan program for soybeans, pea-
nuts, and flaxseed.

(3) A revision in the Agricultural Adjustment Administration program
to add grasses and legumes seeded with flax, peas, or small grain to the
list of crop and land uses which may be acceptable to meet the requirement
that 20 percent of the farms' cropland be devoted to soil building crops.

(4) A revision in the Agricultural Adjustment Administration program
providing that approved cover crops--seeded next fall on acreage now devoted
to peanuts grown for oil--may qualify for as much as one half of the
erosion-resisting acreage requirement. In most of the peanut growing areas,
the soil building program requires that cooperators devote a minimum of 25
percent of their farms' cropland for a part of the program year to erosion-
resisting crops.

(5) A plea to cotton growers to plant their full allotments in order
to make available as much cottonseed oil as possible, together with more
longer staple lint, except where this would interfere with contemplated pea-
nut or soybean increases.

Loan Rates for Flaxseed Produced in
192 Announced

The Department of Agriculture announced April 13 the loan rates on
flaxseed produced in 1942. The loan rate for No. 1 flaxseed will be
$2.40 a bushel delivered at Minneapolis, St. Paul, Duluth, Chicago, and
Portland; $2.45 at Los Angeles and San Francisco; and $2.35 at Kansas City,
Mo. Loan values at local stations for flaxseed in storage on the farm or in
country warehouses will be determined on the basis of the terminal market
rates less transportation and 4 cents per bushel handling costs. It is
estimated that the average loan rate on flaxseed stored on the farm will be
at least $2.20 per bushel.

The announcement of the new rates implements the statement made
January 16, 1942, by the Secretary of Agriculture that prices for flaxseed
would be supported at levels to encourage expanded production. Flaxseed is
an important source of drying oils which will be required in increased
quantities to offset curtailed imports. The loans will be made by Commodity
Credit Corporation and the program will be administered in the field by the
local committees of the Agricultural Adjustment Agency..

The general provisions of the flaxseed loan program are similar to
those in effect last year. The discount for flaxseed grading No. 2 will be
5 cents per bushel. A deduction of 6 cents per bushel will be made unless
evidence is submitted that freight has been paid and that freight bills have
been registered for transit privileges. No storage allowance is made for
farm storage and leans secured by warehouse receipts will be discounted
7 cents a bushel unless they carry an endorsement stating that storage charges
have been paid through June 30, 1943. This deduction represents the estimated
average of storage charges which the Commodity Credit Corporation would be
required to pay if the producer failed to redeem his note.


- 12 -









Loans will be made through January 31, 1943, and the-notes will
mature on demand or June 30, 1943. Only flaxseed grading No. 2 or better
will be eligible for loan. Seed containing more than 30 percent damage, or
.more than 11 percent moisture, or otherwise of low quality, is not eligible.
Seed must also have been produced in compliance with the regulations of the
Agricultural Adjustment Administration program. I

UTILIZATION OF FATS AND OILS, BY CLASSES OF. PRODUCTS, 1912-41l

Total Utilization of Fats and Oils by
Classes of Products,. 1912-41

Estimates of the total utilization of fats and oils, crude basis, in
the United States annually from 1912 to 1941, by major classes of products,
are shown for the first time in table 3 of this report. Total utilization
each year has been estimated by adding together the annual figures on
domestic disappearance of the individual fats and oils, which in turn are
derived from statistics of production, factory stocks, and foreign trade
as reported by the Bureau of the Census and the Department of Agriculture.

The estimates of utilization in the various classes of products have
been arrived at independently (as indicated by footnotes to the table),
except in the case of "other edible products," which is a residual item,
obtained by subtracting the estimates for all the other classes of products
from the estimate of total utilization. The basic data for the earlier
years shown are less complete and less satisfactory than data for the later
years. Several of the estimates for the years 1913, 1915, 1918, and 1920
are based on straight-line interpolations.

Total utilization of fats and oils in the United States has a little
more than doubled during the.30-year -eriod, rising from a little over 5
billion pounds in 1912 to slightly less than 11 billion pounds in 1941.
Per canita utilization during this period increased from 53.4 pounds to
82.3 pounds. The increase has been unevenly distributed between utilization
for food and utilization for industrial ournoses. On the basis of a
straight-line trend, the increase in industrial utilization during the 30-
year period may be calculated at 130 percent, as against an increase of
95 percent in utilization for food. The greatest percentage increases among
the individual classifications occurred in edible uses other than butter,
lard, and margarine, 150 percent; in utilization for soap, 160 percent; and
in the miscellaneous group of industrial uses, 190 percent.

An unusually sharp rise in the utilization of fats and oils occurred
in 1941. Utilization for food continued to increase at approximately the
same rate as the long-time trend (see chart on cover page), but utilization
for industrial purposes was stimulated by the unusual rate of manufacturing
and building activity in 1941. Total industrial utilization was up 920
million pounds, or 30 percent, from 1940.

The increase, in the miscellaneous group of industrial uses (including
among many other items tin and terne plate, cutting oils, leather, and
textiles) was especially marked. Estimated consumption increased 47 percent,


Fos-61-62


- 13 -







AP-IL 192


from 410 million pounds in 1940 to 601 million pounds in 194l. The drying
1adustries'took 34 percent more than in 1940, and the soap industry, 25 per&
cent more. Total utilization for food increased by 4 percent. Decreases in
butter of 3 percent and in lard of 2 percent were more than offset by a net
increase of 14 percent in the consumption of fats and oils in margarine,
cooking fats, salad oils, and other food products.

Increased utilization of fats and oils in 1941 was made possible by
an expanded domestic production of tallow, greases, and oilseeds, and by an
improvement in the ocean ship-ing situation in the latter half of the year,
which permitted larger total imports than in 1940. Despite these favorable
factors, disappearance of fats and oils outran production, and factory stocks
of crude and refined oils were drawn upon to some extent during the year.

Factory Consumntion of Specified Fats and
Oils, by Classes of Products, 1939-1-T

Data for the years 1939-41 on factory consumption of fats and crude
oils by classes of products, as reported by the Bureau of the Census I/,
together with the estimated total apparent disappearance, pre given in
this report (table 4) in continuation of similar statistics, beginning 1931,
published in the Aoril 1939 issue of The Fats and Oils Situation.

Total disan-earance of lard during 1941 was about 1,935 million pounds,
little different from the 1940 disappearance of about 1,933 million pounds.
The trice of lard was much higher in 1941 than in 1940, however, because of
Government purchases and higher consumer Turchasing power, and this was
reflected in a sharp reduction in the utilization of lard in manufactured
products. Factory consumption drowned from about 30 million pounds in 1940
to about 19 million pounds in 1941. Utilization for soap, which had been
at the unusually high level of 645,000 pounds in 1940 declined to 88,000
pounds in 1941.

Factory consumption of rendered porch fat is reported for the first
time by the Bureau of the Census for the year 1941. A comparison of the
figure reported, almost 50 million pounds, with the figure reported for
lard, about 19 million pounds, suggests that rendered pork fat is a con-
siderably more important item in factory consumption than lard itself. Like
lard, it is used almost entirely in the manufacture of food products.

Factory.consumption of inedible tallow and greases amounted to about
1,661 million pounds in 1941, compared with approximately 1,242 million
pounds in 1940 and approximately 1,085 million pounds in 1939. The increase
in 1941 came largely from increased slaughter of beef cattle, increased
recovery of greases, and from the unusually large stocks that had been accumu-
lated during 1940. lost of the factory consumption (about 1,368 million


1/ Factory Consumption of Animal and Vegetable Fats and Oils by Classes
of Products for 1941, preliminary report, Washington, March 18, 1942. Data
fdr earlier years are given in Animal and Vegetable Fats and Oils, an annual
report of the Bureau of the Census.


- 14 -







rd's-61.62


- 15 -


pounds) was accounted for by soap, but utilization for miscellaneous in-
dustrial purposes, including lubricants, increased from approximately 196
million pounds in 1940 to 289 million pounds in 1941.

Factory consumption of edible tallow, oleo oil, and oleostearine also
increased in 1941. Consumption of these three products combined was approxi-
mately 105 million pounds in 1941 and 90 million pounds in 1940. All are
utilized almost entirely in food products.

Factory consumption of cottonseed oil increased by about 164 million
pounds in 1941, when it amounted to 1,444 million pounds, compared with
1,280 million pounds in 1940 and 1,321 million pounds in 1939. The large
crop of peanuts in 1940 resulted in a high level of curshings in 1941.
Factory consumption of peanut oil was at the record level of approximately
114,000 pounds in 1941 compared with 40 million pounds in 1940. Peanut oil
and cottonseed oil are utilized almost entirely in food products.

The consumption of soybean oil in reporting factories also was in-
creased, totaling 464 million pounds in 1941 in comparison with 432 million
pounds in 1940 and 370 million pounds in 1939. Utilization in food products,
the major outlet for soybean oil, showed only a slight increase, but there
were increases of about 40 percent in utilization for several industrial
purposes. Utilization for soap increased from about 18 million pounds to
about 25 million pounds; for paint and varnish, from about 30 million pounds
to about 42 million pounds; and for miscellaneous industrial uses, from aboit
16 million pounds to about 23 million pounds.

Reported factory consumption of corn oil, the remaining important
domestic vegetable oil, was somewhat lower in 1941 than in 1940. However,
the estimated apparent disappearance, including direct use as a salad and
cooking oil and for other purposes, was higher. Moderate increases
occurred in the utilization of corn oil for soap and for miscellaneous
industrial purposes. On the other hand, a reduction was registered in its
utilization in manufactured food products (about 64 million pounds in 1941
compared with approximately 72 million pounds in 1940.)

Among the imported oils, perilla, tung, babassu, olive, and sesame
oils were consumed in smaller quantities because of special difficulties
in obtaining these oils from abroad. The curtailment in factory con-
sumption of perilla oil was particularly severe. About 7 million pounds were
consumed in 1941, compared with about 19 million pounds in 1910 and about 43
million pounds in 1939.

On the other hand, a large increase was reported in the factory con-
sumption of castor oil. Total factory consumption rose from about 41 mil-
lion pounds in 1939 to 54 million pounds in 1940 and 90 million pounds in
1941. Of the total quantity consumed in 1941, approximately 42 million
pounds were utilized for miscellaneous industrial products and 44 million
pounds for paint and varnish. Dehydrated castor oil has been used increas-
ingly in the drying industries as a substitute for tung oil and perilla
oil.

9






APRIL 1942


- 16 -


Imports and domestic production of flaxseed were at relatively high
levels in 1941. Factory consumption of linseed oil totaled about 539 mil-
lion pounds compared with 386 million pounds in 19_J0 and 345 million pounds
in 1939.

Reflecting increased imports and a strong demand, factory consumption
of both coconut oil and palm oil was substantially higher in 1941 than in
1940. Approximately 638 million pounds of coconut oil were consumed in
reporting factories in 1941 compared with 528 million pounds in 1940.
Factory consumption of palm oil totaled approximately 278 million pounds
in 1941 compared with 157 million pounds in 1940. Seventeen percent of the
coconut oil was used in food products, and about 76 percent for soap. Of
the palm oil consumed, 33 percent was used in food products, 47 percent for
soap, and 15 percent for tin and terne plate.

Marine mammalpils (whale and seal oils) were used in considerably
smaller quantities in 1941 than in 1940. Factory consumption is reported at
about 18 million pounds in 1941 as against approximately 27 million pounds in
19140 Despite the lower total, utilization for miscellaneous industrial uses
increased from about 8 to 11 million pounds. Utilization for soap, formerly
the principal use for these oils, was reduced sharply. Reported utilization
of fish and fish-liver oils by classes of products reveals a marked shift in
use. Smaller quantities were utilized in the manufacture of food products
and soap in 1941, while increased quantities were used in the drying indus-
tries and for miscellaneous industrial purposes.

The outstanding facts indicated by these statistics annear to be (1)
the large increases in 1941 in consumption of fats and oils of domestic
origin, particularly the increase in consumption of inedible tallow and
greases; (2) increases in consumption of coconut, palm, linseed, dnd Castor
oils; and (3) a tendency toward increased utilization of fish oils, marine
mammal oils, and soybean oil in the drying industries and other industrial
uses.








Table 3.- Utilitation of fats and nild, crude basis, in food, seap, paint,
and other products, United States, 1912-41


:Butter : Lard, :
s ex- a ex- 1 c
Sclud-: : olud- :Pouds: .
Sing i Mar- ing : and other
s use s ga- a use jrge edible Total
I in rines in stable prod- food
:marga-s som ook- uIct
i rings g :pounds: ing
S1/ s s ete. .fats


Year


Nilt
a lb.

s 1,578
1,t00
* 1,680
s 1,728
: 1,764
s 1,629
* 1,438
3 1,802

: 1,873
S1,756
a 1,883
s 1,994
: 2,051
* 2,084
s 2,171
i 2,158
S2,111
i 2,114

a 2,133
s 2,244
* 2,275
a 2,248
* 2,312
t 2,207
s 2,135
i 2,156
s 2,194
a 2,333


Mil.
lb.

1,059
1,029
1,045
1,147
1,169
1,031
1,226
1,111

1,260
1,158
1,446
1,580
1,601
1,400
1,413
1,486
1,564
1,526

1,533
1,657
1,768
1,727
1,611
1,211
1,438
1,358
1,416
1,617


ilb.
lb.


fil.
lb.


Nil.
lb.

125
134
124
125
165
253
309
325

325
189
154
194
199
202
209
237
275
305

277
192.
167
200
216
309
325
326
312
243


909
1,118
1,447
1,317
1,173
S1,205
1,488
1,475

1,003
1,153
1,268
1.282
1,245
1,686
1,731
1,641
1,694
1,871

1,944
1, 208
969
972
1,215
1,552
1,614
1.605
1,517
1,406 1


Mil.
lb.

3,671
3/3,881
4,297
3/4,317
4,271
4,119
6/4,460
4,512

3/4,162
4,257
4,751
5,049
5.096
5,372
5,525
5,522
5,643
5,817


1912
1913
1914
1915
1916
1917
1918
1919

1920
1921
1922
1923
1924
1925
1926
1927
1928
1929

1930
1931
1932
1933
1934
1935
1936
1937
1938
1939


s Sa
i
SSoap

a
a


Mil
lb.


741
3/760
819
3/94 6
.,059
1,202
6/1,230
938

3/915
991
1,119
1,196
1,321
1,415
1,486
1.626
1,635
1,689

1,560
1,542
1,527
1,456
1,615
1,504
1,578
1,659
1,677
1,810


: : Total:
: Other: soap, Total
:Drying: n- dryi, do-
: in- : and .ti-
: du8 t.s :other eatic
:tries sria indus- dis-
P2/ :odtrial ,apear-
S :uet sprod- nee


: : uctts
.i Mil. mi. Mil.
lb. lb. lb.


517
4/655
548
4/548
628
587
502
556

593
582
727
793
807
844
837
869
915
931

675
612
474
544
589
708
776
830
673
813


161
5/166
171
5/178
185
181
.196
176

173
168
203
229
232
245
254
265
277
287

265
239
189
271
292
362
407
;83
291
383


1,419
1,581
1,537
1,672
1,872
1,970
1,928
1,670

1,681
1,741
2,050
2,218
2,360
2,504
2,577
2,761
2,826
2,907

2,500
2,393
2,190
2,272
2,496
2,573
2,761
2,872
2,640
3,007


lb.

5,089
5/5.462
5,834
5/5,988
6,143-
6,088
6,388
6,181

5,842
5,997
6,800
7,266
7,456
7,876
8,101'
8,282
8,470
8,723

8,387
8,335
8,001
8,17?
8,614
8,66k
9,09f
9,247
9,07t
9,648


1940 s 2,275
1941 /: 2,208
I


257
297


1,903 1,196 1,076 6,708 1,853 797
1,867 .1,418 1,172 6,963 2,310 1,068


410 3,059 9,767
601 3,979 10,942


Continued -


642
633
754
765
810
820
952
997
,042


5,887
5,942
5,811
5,901
6,118
6,089
6,332
6,376
6,437
6,641


~ _~__


nn I i i !


_ __


__


708"61-62


- 17 -


P


1







APRIL 1942 18,- .

Table 3.- Utilization of fats and 6ils; crude basis, in food, soap, paint,
and other products, United States, 1912-41 -Continued

Compiled as follows:
Butter and lard -
Total apparent disappearance, less quantities of these fats reported or
estimated as used in the manufacture of margarine., shortening, soap, print-
ing inks, and for other edible and miscellaneous' products.
Margarine- -
1912-21, estimates based on fiscal year figures'ohaquantities of fats and
oils used in'manufacture, from Bureau of Internal Revenue. and Institute of
Margarine Manufacturers, and bn production data'for calendar years fr6m
Bureau of Internal Revenue. 1922-41, consumption of fats and oils in manu-
facture, from reports of the Bureau of Internal Revenue.
Compounds and vegetable cooking fats and other edible products *
1912-30, total food, minus total'domestic disappearance of butter and lard,
excluding quantities used in margarine, compounds, etc., and fats and oils
estimated or reported as used in the manufacture of margarine.
Compounds and vegetable cooking fats -
1931-41, factory consumption, from Bureau of the Census.
Other edible products -
1931-41, total food, minus total domestic disappearance of butter and lard,
excluding quantities used in margarine, compounds, etc., and fats and oils
reported as used in the manufacthre-of margarine and compounds and vege-
table cooking fats.
Total food -
Total domestic consumption, all fats and oils, less quantities used in soap,
drying, and other nonfood industries.
Soap -
1912-30, from United States Tariff Commission Report to the Congress an
Certain Vegetable Oils, Whale Oil and Copra, Report No, 41, Second
Series, pp. 127, 130-132; 1931-41, factory consumption of fats and oils in
soap as reported by the Bureau of the Census, plus approximately 88 percent
of the item "loss, including oil in foots."
Drying industries -
1912-30, total domestic disappearance of linseed oil, tung oil, and perilla
oil, plus 20 percent of total domestic disappearance of fish oils; 25 per-
cent of soybean oil; 4 percent of castor oil. 1931-41,.total domestic dis-
appearance less reported nondrying uses of linseed oil,.tung oil, perilla
oil, and oiticica oilj and factory consumption of otherfats and oils in
paint, varnish, linoleum, oilcloth, and printing inks, as reported by the
Bureau of the Census.
Other industrial products -
Total domestic disappearance of neatsfoot oil, wool grease, cashew nut-shell
oil, castor oil, hempseed oil, Japan wax, kapok oil, mustard oil, rape oil,
and vegetable tallow, less quantities of these oils reported by the Bureau
of the Census as used in the manufacture of food products, soap, and in
the drying industries, 1912-41, plus 2 percent of total domestic disappear-
ance of all fats and oils, 1912-30, and factory consumption of other fats
and oils in "miscellaneous" products, as reported by the Bureau of the Census,
1931-41.
Continued -





130:.6142.. 19

Table 3, Utilization of fats and oils, crude basis, in food, soap, paint,
Sand other products, United States, 1912-41 -Continued

Total domestic disappearance, all fats and oils, computed from data en production,
trade, and stocks.

o Actual weight, containing approximately 80 percent butterfat.
SPaints, varnishes, linoleum, oilcloth, and printing inks.
/ Interpolation with adjustment to total consumption minus consumption in dry*
and miscellaneous industries.
S Fish oils interpolated.
Interpolated,
Same as footnote V/ with adjustment upward of 100 million pounds in the case
of soap, and downward 100 million pounds in the case of food*
1/ Preliminary.







S- 20 -


APRIL 1942


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- 25 -


Table 5.- Lard, looses Wholesale price per pound, Chicago,
1920-March 1942


Y i t : s Aver-
Year Jan. Feb.. Mar., Apr. May June July Aug. SNept. Oct. N. Dec. ,
i6 #~ Ih~O


sCents Cents


Cents Cents Cents Cents Cents


Cents Cents Cents


crn', a Cantb Cbats


18.5
91.
10.1
10.5
9,9
15.3
13.0
11.5
10,8
11.1

9.6
8.0
3.8
4.2
5.8
12,9
10.4
11.1
7.8
5.7


19.0
8.4
10.6
10,4
9,6
14,9
14.4
11,4
11,0
10.8

9.4
7.2
3.3
5-6
5,5
13.2
9.8
11.4
7.6
5.9


18.8
8.8
10-8
10 .4
9.7
16,3
15c8
12,0
11c,0
10.9

8.9
7.3
3.3
5.6
6.0
13.8
9.7
11.6
7.8
5.5


17.6
10.3
10,5
10.0
1019
16.7
15.0
11,8
11.5
11.3

8.9
7.2
4.6
'6,0
6.3
14.0
10.4
12.0
8.4
5.1


* 17.4
10.3
10.5
10,2
13.3
16.9
1a.1
11.5
12 o0
11.5'


18.9
10.7
10,3
11,8
13.3
17 .
13.9
12.3
12,4
11.3


10.4 11.5'
6.7 "7.1


22.6
11.8
9.4
10.8
11.6
15.2
14.2
11.5
11.0
10.9

9.5
7.9
4.6
3.6
4.6
12.5
10.6
12.8
8.2
6.3

6.3
5.6
11.0


19.1
10.7
10.0
10.5
10.3
14.7
13.8
11 -5
10.3
10.9

9.8
7.3
4.1
3.3
5.6
13.1
10.3
11 .V
8.2
6.1

5.3
5.5
11.4


19.3
9.0
10.7
12 ..3
15.3
35 7
153,5
12,.2
11.9
10.7

11.3
7.5
4.3
' 5,1
9.3
14.4
11.0
10.1
7.2
6.3


18.8
8.6
10.6
12.8
14 .3
15.0
32.0
11.9
11.5
10.2

10.;
6.0
4 ,5
5.3
10,1
12.9
11.3
9.3
7.0
5.7


13.4
8.1
10.3
12 ,0
15 5
13.5
32.0
11.2
10.8
9.6

*.0
5.1
3.6
4 .5
11 .1
11.6
12.6
8.0
6.5
5.8


18.6
9.7
10.4
11.1
12,0
15,6
13.8
11.7
11.2
10.9

9.8
7.2
4.2
4.8
7.4
13.6
10.7
11.1
7.7
6.0


19.4
10.6
10.5
11.1
10.1
16.0
13.6
11.6
10.6
11.3

9.5
8.3
4.2
3.8
6.3
13.2
10.3
11.9
8.1
6.0

5.0
6.2
11.4


Compiled from The National Provisioner. Simple average of weekly quotations,
January 1920-Nay 1939; beginning June 1939, simple average of daily quotations.


1920
1981
1922
1923
1924
1925
1926
192T
1928
1929


1930
1931
1932
1933
1934
1935
1936
1937
1938
1939

1940
1941
1942


4 .9
5 .'3
8.1
16.0
11.4
11.5
7,6
5.3


4.8
5.0
9.4
15.9
11.2
11,3
7.6
8.0


5.3 5.0 4.7 4.9 4.6 5.1 4.7 4.9 4.7 5.0
7.8 8.6 9.2 9.5 9.8 10.6 9.9 9.9 10.2 8.6


_~C


I


--
;;





APRIL 1942


Table 6.- Wholesale prices of fate and oils: Index numbers,
March 1940 and 1941, January-March- 942

(1924-29 = 100)
Group: March 192
__ : 19i0 : lfjI4 : Jan. : Feb. ; Mar.


Eight domestic fats and oils I_ .....: 84
Eight domestic fats and oils ........ 60

All fats and oils (27 items) ........: 65

.Animal fat s ... .....................: 60
Marine animal oils ................: 89
Vegetable oils, domestic ..........: 70
Vegetable oils, foreign ...........: 90
Grouped by use:
Butter ............................: 64
Butter, adjusted 2/ ...............: 62
Lard .................... ....... 45
Food fats, other ...................: 67
Soap fats ......................... 65
Drying oils .......................: 103
Miscellaneous oils ................: 100


93 122 125 127
66 87 8 90

72 96 97 98


67
99
71
103

0

54
78
75
99
86


82
121
12
154


S80
79
82
140
126
118
107


83
125
125
156

79
76
l3.
142
128
124
113


84
126
128
160


78
" 76
97
142
128
134
*114


Data for earlier years beginning 1910 are given in Technical Bulletin No. 737
(1940) and The Fate and Oils Situation beginning December 1940.
l_ 1910-14 = 100. 2/ Adjusted for typical seasonal variation.

Table 7.- Prices of specified oil-bearing materials,
March 1940 and 1941, January-March 1942
:Item March : 1942
___It_ Unt : 1940 1941 Jan. : Feb. : Mar.
: :Dollars Dollars Dollars Dollars Dollars


Castor beans, Brazilian,
shipment, C.& f.,New York : Long ton:
Copra, bags, f.o.b.
Pacific Coast : 100 lb.
Cottonseed, U.S. farm price:Short ton:
Flaxseed, No. 1, :
Minneapolis .............. Bu.
Flaxseed, U.S. farm price .:
Peanuts, shelled,
Runners No. 1, S.E. mills : 100 lb.
Peanuts, (for nuts and oil):
U. S. farm rice ..........: :
Peanuts for oil, delivered :
designated agencies ......: 100 lb.
Soybeans, No. 2 Yellow,
Chicago ..................: Bu.
Soybeans, U. S. farm price I "


55.25 78.70 94.38 95.25


1.73
26.s84


2.38 5.50
24.81 43.24


2.08 1.80 2.23 2.33 2.59
1.91 1.53 1.95 2.08 2.37

5.25 5.30 8.67 9.95 13.14

3.60 3.46 5.11 5.44 6.03
- -- 4.07 4.os 4.05


1.14 1.o4
1.01 .s9


1.83 1.95
1.65 1.75


1.92
1.79


Compiled from Oil, Paint and Drug Renorter, Daily Trade Bulletin (Chicago),
Daily Market Record (Minneapolis). and reports of the Agricultural Marketing
Administration, and bureau of Agricultural Economics,


- 26 -


45.04 44.18






rFO-61-62


iF:
.,... ..
. .. *.


Tate 8.- Price ner ton of specified oilseed meals, March 1940
"" and 1941, January-March 1942


Ste Mliar. : 19T42
I tem / : 1940 : 11 : Jan. : Feb. : Mar.
: Dollars Dollars Dollars Dollars Dollars


Copra meal, Los Angeles .........
Cottonseed meal, 41 percent
protein, Memphis ..............:
Cottonseed meal, 41 percent
protein, Chicaeo ..............
Linseed meal, 34 percent protein,:
Minneapolis ...................:
Linseed meal, 32 percent protein,:
New York ......................:
Peanut meal, 45 percent protein :
f.o.b. southeastern mills .....:
Soybean meal, 41 percent protein,,:
Chicago ...................... :
i* .


19.60 25.25


30.25

36.20


48.30 49.50 51.10


24.45.. 3Q.90

30.75 46.10
.,****


30.40 27,40-- 39:50
$t ** *
35.50 23.1 -0 -34:75
S- .- *I *
32.69. 20..8& -*44.12

30.45 26.85 46.45


* 37.90

43.60

S42.50


37.00

42.60

42.o00

34.40


Compiled from records of the Agricultural Marketing Administration.
I/ Baggdd, carlots. 2/ Bulk. -. -

Table 9.- Production and stocks of butter, lrd, rendered pork fat;
S cottonseed oil, and peanut oil, February 1940 and 1941,
December-February 1941-42 .., .

Itm Feb. ": i94z
____ Item_ __ 1940 : 1941 : 'Dec. Jan. :Feb. 1/
:M11. lb. Mil. lb. Mti. lb. Mil. lb. Mil. lb.


*rroCuction
Creamery butter ...................
Lard, Federalr.inspection ........
Rendered porlo fat 2/ ............
Cottonseed oil, crude ...........:
Peanut oil, crude ...............:
Stocks end of month
Butter ..........................:
Lard ............................
Rendered pork fat .. -
Cottonseed oil, crude basis j/'..:
Peanut oil, crude basis *3 ......:


127.8
ll. 0
141.0

138.7
2.6

18g.4
256.6

877.4


130..
106.2
11.5
147.6
24.8

16.5
317. '

723.0


.117.9
171.4.
19.0
154.4
8,6


l14.4
181.2
5.3
508.0
43.6


121.4
18 3.3
.20.0.
146.7
.4.4.

83.1
204.4
5.1
528.8


118.8
115.0
. 13.5
128.8
4.0

63.7
201.9
4.7
549.1


Compiled as follows:
Production of creamery butter and peanut oil, and cold storage holdings of
butter, lard and rendered pork fat, Agricultural Marketing Administration
and Bureau of Agricultural Economics.
Production under Federal inspection of lard and rendered pork fat, Bureau
of Animal Industry.
Factory production and stocks of cottonseed oil, and stocks of peanut oil,
Bureau of the Census.
I Preliminary. 2/ Included with lard nrior to November 1940. 3/ Crude
plus refined converted to crude basis by dividing by the following factors
Cottonseed oil, 0.93: peanut oil, 0.94.


- 27 -


45.69" 45.35

46.45 44.85


II~




UNIVERSITY OF FLORIDA
IIIIIIIIllllllHll IIIIIIll
APIL 1942 2- 3 1262 08905 1725
Table 10.- Oleomargarine: Production and materials used in manauacture .
United States, February 1940 and 1941, Docomber-Yebruary 1941-42
3- lelI42 o.
Item a 7 1 ; I s '
Item 1940 1941 December Jamawy Pea
1- 1.000 21b, 00l L__= lb. 1.000 l b- 1_0ir_3 'l
Production
olored ..................... 169 338 412 42 a 14
Uncolored ..9 a 2.9770 3426 4.64
Total AMN ..............4... 1,7 i 22 201l
Materials used
oleo ol ...1.....9...3.3....... 1.337 11.61 2j127 2g234 i^ .,, |
Oleostearise ...1...,....,,.,: 21 253 235 2984
Lard, neutral ................ 333 503 992 1,217
Oleo stock *.....,,oe.,.... ,.* o105 120 355 360
Monostearine .,.* ,.. ....** *11 18 *17*.**,
total, animal .............,,,,,,,,,, 3.727
Cottonseed oil *.....e1... ......, 10,200 11,b26 l4,12 l,47
Soybean oil *..**.*,,.........i* 8,657 7.394 5,242 6a906 alp
Peamt oil ...*...........e..s, 153 163 205 195 214
corn oil *.*.... ......*****...... 9 39 70 118 130
Cottonseed stearine ,,,,,,,, -- 2 -- 6 i
Soybean stearine ......,...,,a -- -- -- -
Vegetable gum ***. ,,***,..**** S. 1 -
Total, domestic vegetable *,, 12.100 19*.2 g6 21,42 I.1V
Coconut oil ................. 1,841 1,296a 41553 2,146
Babassa oil ..., ,.,,.,,,,,a 770 62 -- 5 2
Palm oil .......,,,,. ..,. -- -- 528 728. 1W7
Palm flakes 8 ,*.o ..,,,,,,,, ,,. 28
Palm-kernel oil ...,,.....,... a -- -- 137 --
Sunflower oil ,,eo..., ... g ,, -- -- 1__
Total,, foreign vegetable. 2.61 1.35 Q96. 4 l
Total fate and oils .....,, 23,747 22.630 28.q
Milk .......................... 5.761 5.348 ,0 .113 5. T
Salt *....****,.......o,,,,.,,* 1,232 998 1,186 1,209 1,7
Derivative of glycerine ,....,,. 80 64 76 .
Lecithin **.........*......,..* g 8 14 22 2 ":
Soda (benzoate of) ............l 10 11 15. 16 .
Titamin concentrate .,,,,,,,,,,, 2 1 8 8 9
Miscellaneous eg ge a., .g.. .. -- 1 -m
Total, other materials 35.., 7.q 6- 75 3nlg 7 7l.g
Total, all materials ....... 0 40 29067 35758 36.1 3390
Compiled from Internal Revenue records and Internal Revenue Bulletin,
P preliminary
STotal of unrounded numbers.