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_00071
Classification:
lcc - HD9490.U5 A33
ddc - 380.1/41385/0973
System ID:
AA00005305:00071

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text











1. lk S : hS,8U R,.E I W

..W ^ ^,:.- ..*".". .:,'if


IRMS; 'O. I AN.D MANUFACTURED PRODUCTS,
AT CONTENT, UNITED STATES, 1927-4.6 .
; ] ....












.... 1935 1939 1943 194 ;

... .UURU ERNLS OURICURY KEREL- UCUM KERNELS ., :,;
7i
% T c :oi's o o rkes
3 1: 1;.9.
V, .... ol tt A ....ec s



-' I ." ._

-*. h '
-Q:





; K


:Oi ': ....' Tropical oils"



A]. i 9:' 939... 1 14 "T+ .:
OPOW:Ti O"MAND COPA, ,- o oIL. BABAS U KERNELS AND OIL. ,PALM KERNELS ..,
3:'. :"'',""UUVVRUKERNFLS, OURICURY KERNELS.-4ALTUCUM KERNELS

JinrId{E'I T<'. F Hi I, U.Lrte R, NEG. 45 51. BUREAU OF AGRICULTURAL ECON MIVS:'::



,:i~e.X ..,$! 6iia pcarr:lle.ide-61 i"6ne0'11 i1 sports of fats in 1942 occurred chiefly in tropical
slio.J ri.n'al. -fl:ornt~fo[ ab;out',half of total imports. A moderate Increase in'
p.a. 'P .o:l .).l I.i!a9,t.. r 1.1 6, but -for tropical lIs as a group no major gain i...;,..
:: 0af other. fa.t. -and'. oi] .s, ,except possibly "drying oils," are expected ".
A;:ng t0i4: 1r~g aEropean demand for fats in world markets.

T: .
i.".
:,L ::; : .:.. .. ..., ";" .. ,:. : ..,:.. .... .. !iW.,.
[ -..! -,.. ,. ... 4














!ts. 1: B i 1b6 r
-- CES .

,( Malrclllh I IL oeur -y Harch l_


's.






:-*.
:, *


i:',


Habassu oil, tanks, T. ........................................
Coconut oil, Manila, crude, c.i.f. Pacific Coast 1/ .............
Coconut oil, Ceylon, crude, bulk, S. Y. j ......................
Olive oil, California, edible, drums, N. I. .....................
Olive-oil foots, imported, drums, carlote, T. T. ................:
Palm oil, Congo, crude, bulk, N. T. I/ ..........................:
rapeseed oil, refined, denatured, bulk, Y. I. ....................

Tallow, No. 1, inedible, Chicago ................................:
Grease, A White, Chicago ........................................:
Menhaden oil, crude, tanks, f.o.b. Baltimore ................... .
Sardine oil, crude, tanks, Pacific Coast ........................:
Whale oil, refined, bleached winter, drums, N. ...............:
Cottonee-d-oll foots, raw, (50n T.F.A.) delivered, East .........:

Lineerd oall raw, tank cars, Minneapolis ........................
Linseed oil, raw, returnable drums, carlote, 1. Y. ..............:
Oltictca oil. drums, ,.o.b. 1. T. ...............................
Tun. oil, returnable druaq, carlote, II. Y. ......................:

Castor oil, No. 3, bbl., E. Y. ..................................
Castor all, No. 1, tanks, N. I ................................:
Castor oil, dehydrated, tanks, 3. Y. ............................
Cod-liver oil, med. U.S.P., bbl., N. Y. .........................
Cod oil, Newfoundland, drums, 1. ............................:

Glycerin, Sosplye, basis 80%, tanks, N. Y. ......................:


better. 92-ocore. Chlago i ......................................I
Better, 92-score, NEw lero .....................................
Oleomargarine, dom. i*. Chao ............................
Shortening contal aJp ni mal fat, 1-pound cartons, Chicago .......:
lard, loose. Chicago i'...........................................
lard, prime team, tlerees. Chicago ............................
Lard, refined, I-pound cartons, Chicago .........................
Oleo oil, extra, tiarees. Chicago ...............................
Oleostearine, bbl., K. T. .......................................
Tallow, edible, Chicago .........................................:

Cona oil, crude, tanks, f.o.b. mills ............................:
Corn oil, edible, returnable drums, l.c.l., ew lork ............
Cottonseed oil, crude, tanks, f.o.b. S. I. mills ................:
Cottonseed oil, p.s.y., tank cars, I. Y. ........................
Peanut oil, crude tanks, f.o.b. mills ...........................:
Peanut oil, refined, edible (white), drums, E. T. ...............:
Soybean oil, crude, tank cars, midwestern calls ................. ..
Soybean oil, edible, drums, I.c.l., V. Y. .......................:
Sunflower oil, semi-refined, lank cars, f.o.b. N. Y. ............


Cent- OtaG '0


41.5
42.:2
19.0
17.0
12.1
13.8
15.6
13.0
10.5
9.9

12.8
16.6
12.8
14.3
15.0
16.5
11.8
15.-4
14.3

11.1
11.0
11.8
60.7

11.1
2J 11.6 9/

8.1;
8.8
8.9
8.9
12.3
3.6

S11.3
15.1
24.0
39.0

13.8
13.0
17.9
31.9
11.5

9.8


Canta

41.5
42.2 *
19.0
17.0
12.8
13.8
15.6
13.0
10.5
9.9

12.8
16.6
12.8
14.3
13.0
16.5
11.8
15.4
14.3

11.1
11.0
11.8


11.h
60.?


11.6

1.4
8.8
8.9
5.9
12.3
3.6

14.3
15.1
24.0
39.0

13.8
13.0
17.9
31.9
11.5

9.8


IMrx SUMBEa5 (1935-39 100)


Eight domestic fats and oils (1910-14 100) ....................:
Eight domestic fate and oils .................(.72) .............
i


All fete and oils (27 items) ................. (.73*)
Grouaed b. origin:
Animal fate ...............................(.69")
marine animal oils ......................... (.77-)
V:r table oils, domestic ................. (.84)
Vegetable oils, foreign ....................(.B ")
Grouped bz usa:
Butter ................................... (.67")
Butter, seasonally adjusted ................(.67")
Lard ................. ..................... (.75*)
Other food fats ............................(.84.)
All food fats ............................(.71*)
Soap fate .................................. (80*)
Drying oils ................................(.8*)
Miscellaneous oils ......... ...... .......(.71*)
All industrial fats and oile .............(.82*)


............:

............

............



............
............S
..........l..
............:
............:
............:
.............
,,.....,....,|


142 142 152 15
140 l0o 150 150

146 145 156 157

139 139 152 152
170 170 171 171
160 16o 16o 160
177 177 176 177

139 139 157 157
136 151 152
135 135 13 137
16 168 168 168
115 145 156 156
150 150 150 .150
175 175 174 174
S 154 159 163
16o 16o 160 16o


.6.5
'47.2 -
19.0
17.0
12.8
13.8
15.6
13.0
10.5
9.9

12.8
16.6
12.1
14.3
13.0
* 16.5
11.8
15.4
14.3

11.1
11.0
11.5
60.7
18.0
11 .4
13.0

8.4
8.8
8.9
8.9
12.3
3.6

14.3
15.1
24.7
39.0

14.0
13.3
18.0
35.2
11.9

11.5


Prices compiled from Oil. Paint and Drug Beporter, The National Provisioner, The Journal of Commerce (ew York),
and reports of Production and Marketing AdLmnistration, and Buresa of Labor Statistitc. Excise taes ad1 utenil:..
Included where applicable. Index numbers of earlier years beginning 1910 are given in Technical Bulletin ao. f
(1940) and The Fats and Oils Situation beginning Deceaber 1940.
L/ Three-cent processing Lax added to price as originally quoted. 2/ New Orleans. *Multiply by this factor te A
convert current index number (1935-39 100) to old basis (1924-29 100).


146.5
47.2
19.0
17.0.
13.0
14.0
15.7
13.0
10.5
9.9

12.1
16.6
12.8
14.3
13.0
16.5
11.8
15.4
1 .3

11.1
11.0
11.8
60.7
18,0
11.t
13.0

8.4
8.8
5.9
8.9
12.3
3.6

11.3
15.1
25.4
39.0


14.2
S19.4
35.2
11.9

11.5


.19 .....


1 5* ...
994






4 :
11*5



ti



5 "* i j









I1 m *;
1.77 :::mmm NEEi E

29.4














11.0





130 .. j :
\. p




'177
15 .




15%






ib.
15' ;r
i i (@
355i
l :
15 Ii :: l0i
-177 i


x u nrm. Rs (t9)5-39 i )








---------.--------- -------'------.-------"-----"

Approved' b: tU:: Outlook :.rd S'.tu tio;. Bo'r:, ':ay 27, 1946

:,.. Contents
Page

: Sannary ........................... .......... 3
: Outlook .......................... .......... 5
Supplies and Utilization of Soap Fats, 1945.. 13
,,. Trends in..;ay.ing Oils, 1945 an' 1946 ........ S :
: : Governnent Actions .......................... 25
: Recent Developnents ......................... 2 :


SD!U..ARY

Sone reduction in total domestic out-ut of fats and oilE is probable

in 1946 as a result of a rubstanrtial decline irn butter and a decrease in out-

put of cottonseed oil following the 25-perce-.t reduction in the cotton crop

last year. Increases are expT.ct&L this year in :r.,.uccior cf lard ant. crease,

reflecting late nar;:etir.gs of l)jS-cro- sprir.: nir7s, a 12-percent increase in

the 1945 fall piC crop, and. probable earl:' nnrketings of 1C.46-crop spring

pigs. Output of linseed oil friri .roncstic flanx ced p-Irobably rill increase

moderately.

Recent developner.ts point to a further declinee in .loneptic output of

fats nnd oils in 1947. Lirvstock-feed -rice relaticrnshi e are now distinctly

unfavorable to fealers, particularlyy of :'-c.s :'n' cattle, as *i result of the

sharp increases it. -rices ,f feed e rrair.s ar:. ojlseed reals in early May. Larer

tallow, an grease production. ra.: .ecli::e 30j0 illicn to 350 million rourds

in 1947. The soybean-cor. anc flaxs'ee--vh.-at price ratios ur.ner the new coil-

ings for corn art. wheat are c-rsj.:erabl;, 'elow the nveraic for the war years,

Although re-orts on acre:.,-:e ,.re not yet available, ':'oth :-ytean arnd flaxseed

production are likely to be na.toriall- smaller in 1946 than in 1945, This

will be reflected. largely in re.-'ceC" oil output in 147.





nAY-JUnE 1946 4 -

Allocations of fats for 1946 shipment to foreign countries and 0. S.

territories amount to slightly less than 1 billion pounds. Exports reached a

peak of 1.6 billion pounds in 1943 and 1941, but declined to 1.1 billion pounds

in 1945. Lard accounts for more than two-thirds of the total fat scheduled fpr

export in 1946.

Imports of fats and oils, including oil-bearing materials, are likely to

decline this year even with some increase in in-shipments of copra. Imports

in 1942-45 were small, averaging less than 1 billion pounds per year compared

with a 1937-41 average of 2 billion pounds. To important quantities of animal

fats or edible vegetable oils (except lauric-acid oils) are scheduled for

importation into the United States in 1946. Imports of copra from the

Philippines, which were negligible in 1945, will be fairly substantialin 1946.

Butthis increase will b- partly offset by curtail_.ent of irpnrts of South Sea

c-~r-, Cr--1,r. -.rut nil -- rmaor, -. W-qst .'-fric.Tn x.1-.- k'rnr"1 .

Following early :My increases in price ceilings for principal oilseed-

meals, amounting to $14 .er ton, the ceiling .,rice for flaxseed was advanced

25 cents per bushel, effectiv- May 17. I'o chart. war made in the ceiling price

for soybean"; the increase in oilneal value about offset the Government sub-

sidy to processors of soybeans. There is no ceiling on the price of cotton-

seed.

The current low level of butter outnut indicates a further decline in

civilian cmneumptior of butter per person for 19'6, but civilian supplies of

other food fats per -erson nay total about the same as last year. Total dis-

appearance of food fats into civilian trade chan-.els in 1945 is estimated at

42.3 pounds per person (including actual weight .f butter and fat content of

margarine). This wa- 12 percent below the average for 1935-39.





OS-108 5 -

Use of fats and oils in the manufacture of soap for civilianrwill be

slightly less in 1946 than in 1945; if quotas are continued at present

- levels. The civilian supply of soap per person is considerably smaller than

i- in 1945, reflecting an increase of about'8 percent in the civilian population,

' due chiefly to demobilization of military personnel. Use of fats for civilian

soap totaled about 12.6 pounds per person in 1945, somewhat less than in .1944

bnt slightly above the 1935-39 average.

Supplies of oils and fats for civilian drying-oil products in 1946.

will be about 40 percent larger than in 1945, if manufacturers' quotas are

maintained at present levels. The increase is due chiefly to the sharp reduce

tion since the end of hostilities in military procurement 6f drying-oil

products ;and to a moderate increase in production of linseed oil. Civilian

demand for paint, varnish, linoleum, and other drying-oil products is strong

and at present prices exceeds supply of these products by a wide margin.

OUTLOOK

Domestic Production of Fats and Oils Declining

Production of all fats and oils fror domestic materials in 1946 is fore-
cast at 9,250 million pounds, roughly 2 percent less than in 1945 (Table 26).
Butter production is materially smaller. Total output of creamery butter for
the first 3 months of 1946 was 89 million pounds less than a year earlier. A
reduction of cottonseed-oil output' also has occurred this year, because of the
sharply reduced cotton crop in 1945. Production of cottonseed oil in Jaruary-
April 1946 was 165 million pounds less than a year earlier. These decreases
in butter and cottonseed oil are likely to outweigh increases in lard, linseed.
oil andgrease production.

For 1947, a decline of 5 to 10 percent front the 1946 level nay occur in
domestic production of fats and oils. Recent increases in prices of corn and
other grains have resulted in below-average price ratios between hogs and corn,
soybeans and corn, and flaxseed rnd wheat. Continuation of the hog-corn
price ratio at the recently reduced level probably will lead to early narket-
ings of hogs from the 1946 spring pig crop in the fall and early winter and
to a substantial reduction in the fall pig crop. Both of these developments
will mean less-lard and grease next year. Higiprices for corn in relation
to soybeans apparently are influencing farmers to plant more acres to corn
and less to soybeans than they had planned earlier this spring. The increase
in wheat prices since last fall h.s had a pronounced tendency to reduce flax-
seed acreage.





MAY-JUIE 1946


- 6 -


Table 2.-Exports ..-f f.ts a n la cils from t.e United States including
reexports of items imTported free of iraort tax or duty and shipments to
U. S. territorie', 1,27-46


: :Other:


Lard: But-
: ter


SMil. M
: lb. 1


717
801
S66
674
601
576
612
h45
115
137
163
2314
311
232
424
6r.4
775
894
F564


:Soy- :
:bean :Other:
:oil : edi-:
ahd: ble
:soy- :oils
?be.ns; and
:oil : hoit-:
:Ocuir-: 'rinf:
:aplnt :


Lin-
seed
oil


:pri- :
:mary :
:fnts,: Mar-
:oils,: Par-
:cnd : inc
:oil- :(fat
:seeds:con-
:in :tnr*)
Lterzs:


: :: :of oil:
il. Mil Mil. Mil. -il,
b Ib. lb. Ib. lb.


8
7
7
7
7
6
7
7
6
6
6
C
0


1/ 23
1J107
17 97
.V1 41


5
7

5
6
3Ic
4
2
17
20
17
30
106
3
15-
22
69
70
103


3
2
2
2
1
1
1
1
1
1




7
I/ 15
1/222
_1/314
1/ .32


Ml.
Ib.


240
17
ao00
15?
137
c163
181

0
.20
JO
7;
76
100
131

cli
1 5

136
C2
,U


:Lard, margarine,
:shortening, edi--
:ble oils and sos.p
:(fat content)
:Soap:Total :Net pro-:Procuro-
:(fat : ex- :curement:ment b;y
:con- :ports :by mili-:Am. Bed
:tent): :tary for:Cross Sr
:relief :Prisoner
: : : :of war
: : kgs.
Mil. Mil. Mil. Mil.
lb. Ib. lb. b.


1,110
1,126
1,175
971
599

37S
669
267
234
31
399
606
48G
722
945
1,5C6
1,557
1,030


1946
T-rntative:
allocation
for ye.r :
Actual
export 3/I
Jar..-I-'r.r.:


k27


S ---157---


3 2 3. 6, 9q67


13 IC 13 17 12 5 20 224


Tr-de figures compiled fr-o reports of th. Burc.-i. of the Census, with supplementary
data on shipments to U. S. territr.ries durir.- the ':',r fr;m records of the U. S.
Dept. of Agriculturp. Tent.at.ivc nlloctior.s far export in 1146, '. S. Department
of Agriculture, April ", lc46. Totr!s co.::.cutec fro- unr.runded numbers.
L/ Increase over prewar chiefly rerrcs.'.ts lend-l'.:se sb1p..ents to iussia.
2/ Increase over prewar chiefly ropresernte lend-ler-.se shipments to British Services
overseas.
3/ Shipments to U. S. territories partly estimated.


Year


1927
1928
1929
1930
1931
1932
1933
193-
1935
1936
1937
1933
1939
1340
1941
1942
1943
19145
1945


....

....
....


ri

4j
I
4,1





-7-


orts gnd Imports of Fats Also Declining

S Exports of fats .n.-: oils fr .n th., Unit.(t Statos, which reached a peak
.0:,, billion pounds in 1943 and arl-in in 19-14. declined to 1.1 billion pounds
$5. Tentative allocations of supplies for export this year totil slightly
t0 han 1 billion pounds (including butter in terms of actual weight, and
Minq, shortening, soap, and oilseeds in terns of fat contentt. Lord accounts
re than two-thirds of tne t-tul fat scheduled fr.:r export in 1946. The tctuul
i.taovement for the first three months of 1946 lagged considerably behind rllo-
a'.fcr all items except butter and induasriral oils, for which totul allucu-
are -small. Part of the difficulty arose from prcking-house strikes in
try, with resulting delays in deliveries -..f lard against Govcrnment c. ntraects.
Waxport movement -.f fr-tts-is likely to be rol-tively l..rgc: during tjih sprin'-i rnd
Table 3.-Exports f l:.rd fron the United States, by
countries If destin'ti.-n, 1935-46
S : ;:Mexico : :T- 1
: Eastern .:nd :Oth rS :x
Siod UIMited Belgiun Scnndi- and USSR:Cub: other : nt :torporfs
*Urlited" ~ .Scnndi-: : :Cpobts
!. King-oFrance vian : :ostern: speci- :.ri to:6
Year dor lands c n- 1 : :Heni-2/" field :ries:sh'p-
yar don s:13i shtp
S :Mil. Mil. M. Iil. Mil. M il.. 1 il. Mil. 1i
ib b b. 1. b. i1 .. 1 ... IL 1 b lb*. l.bt Ib
average,:
935-39 97 _/ 2.8 1.2 3.5 --- 59.O 16.6 5.8 26.3 191,9
.940 51.4 .7 4.5 19.7 1.6 --- 67.4 L47.2 8.9 30.8 232.1
941 :247.9 -- -- .2.8 1.3 4.4 78.5 30.1 27.8 30.6 423.5
42 :485.1 -- -- 4 .5 88.2 5G.3 15.7 5.8 32.8 G844
L43 504.4 -- -- -- .2 155.5 50.8 16,6 8.8 38.9 775-
944 :393.9 .1 -- -- 8.7 253.0 66.8 81,9 13.6 .5.6 8944
:945 :178.6 62.7 35.2 -- 46.8 107.0 G60. 21.9 26.2 24.7 5tB'
.946 :

k .year
i(tfentative)
95.4 150.9 58.0 8.2 152.3 -- -110.2 .5j'62.1 28.d 67r0Q
.Jan .-ar.
actual 40.6 27.3 2.2 --- 4.1 7.6 10.6 13.4 3! 6 6/ll. 127.2

p filed from reports of the Bureau of th6 Census, with supplementary ,.ta on ship-
snts to U. S. territories during the war from records .-f the U. S. DepurtMeont of
agriculture Tentative allocuti:-.ns fur 1946, U. S. D-p;prtmont of Agriculture,'
pril 8, 1946, Tctals cdmputod frrm-uinrounded nui r:.:-rs.
Y Includes Gernnu.y, Greece, Italy, Poland, an Sviitzerl.ca...
Includes Canada, Dominioan Republic, Haiti, Columbia, Ecuador, Peru, and
Vcnezula.
3 Included Japan in 1940 an.. 1941.
L/ LOBS than 50,000 pou::..s
S5/ Includes 41.3 million pounds unall..c-te,! rf;sorve.
S /.Partly ostirmted.






AM Y-JUNE 1946


early summer, reflecting fairly large Government purchases since Jhanax,

Of the.total exports in prospect for 1946, approxim-tely 150 million
pounds will go to Latin American countries and Canada, 50 million pompfl to
U. S. territories, and nost of the balance to Europe. Approximately 900 nillior
pounds of fats are scheduled to be taken by UNRRA for eastern mnd southern
Europe.(exclusive of fatbacks which fall under the neat allocation), 1)0 nllic
pounds by France, and slightly over 100 million pounds by the United. ~Engon.
Snaller quantities will go to Belgiun, Netherlands, Norway, Italy, 7i4andi .
the Philippines, and British, French and Dutch colonies and doninions. Nearly
70 million pounds of the estimated supply available for export are held in
unallocated. reserve, pending final agreement by the Conbined Food Board on the'.
disposition of exports.

The United States, although usually a net importer of fats, normally
is the world's largest exporter of lard. In innediate prewar years, the United
ingdon and Cuba provided the principal n:rkets for American lard. During the
Swar, lard fron the United States was important in the British fat supply, and
exports to the United Kingdon counter. sharply.. In addition, substantial
quantities were shipped. to Russia, France, Belgiun, Netherlands, and UNMRA
countries, none of which normally imports nuch American larO., took fairly
.large quantities in.the latter ,art of 1945, and-are scheduled to received a..
najor share of-Anerican lard exports in 1946. -

Inports.of fats an:!--oils into the United States in 1946 are -epected'
to be less than in 1945, when a total of 902 nillien pounds was received (itr-
cluding.fat content of oil-bearing materials anc soap). Prewar inpdrts averaged
about 2.billion pounds annually. .The principal reductions in 1946 imports
will be in sunflower.and other edible vegetable oils and in aninal fats, chiefly
tallow.. Nearly all of the 1946 world export supply-of these fats is destined
for European countries; imports of these oils and fats into the Unitie States
in January to Ma-rch this year totaled only 2 million pounds cor-iared with 60.
million rounds in the corresponding -eriod. of 1945. An increase in inrorts of
Argentine flaxseed ndr linseed oil into the United States is scheduled for'19~46
but actual movement of this seed and oil awaits conclusion of current negotir-
ations between the Corr.od.ity Credit Corporation an'. the Atgentind Governnent%

Shipments of-copra from the Philippine Islands continue to increase.
Anril exports fron the Philiprines totrle'. 24,000 long tons conrared with
14,000 in March, 12,000 in February, and 8,000 in January. However, 5,000 lo.10
tnns of the April total were shirped directly to Europe for the account of .
.URRA. In addition, CCC in March an=. A ril purchased 17 million .pounds of
coconut oil front United States crushers to be shipped to Europe-for the account
of UNREA. This purchase, equivalent to 12,000 long tons of copra, will be
counted as part of the UNTRPA allocation of Philippine copra. Approximately two-.
thirds of Philipoine export supplies of copra this year are allocated to the
United States, and the renainir.g third to other countries, chiefly in Europe.
Tetal in-orts of lauric-acid oils into the United States in ,1946.1nclud-
ing copra in terns of oil) probably will be only slightly larger than in 1945,
despite the fairly substantial inrorts of Philippine copra in prospect. In 19%
import of South Sea copra, Ceylon coconut oil and copra, and West African paln
kernels amounted to 210 million rounds in terns of oil. Shipments of copra to
the United States from the South Seas were terminated in Mr.rch, and no Ceylon
coconut oil and copra or West African pain kernels are scheduled for imports
into the United States this year.


-




















r z Mil. F il.
1:.,I Ib_.


S 578s


,,.... .i.
.535,
b*I'.*. 732.
56607
.. 64o
...S: 676

.. 687 ,

.. 758 l
: .. 774
.. 133
: 192
.. 171
.".: 56618


143
54 ,
70 -
46 :
39
15
20
17
91
70.
,214'
.46
S85
0
58
* .36
26
3S
S94


Mil. Mil.
1 _. lb.


16o
169 '
262
287
258
217
287
156
298
339
411
271
289
227

.78
60
71
66


499
436
583
371
360
239
409
4ol
520
542
756'
437
456
349
48.9
S30Q
271.
284
173


Mil. Mil,
Ib. Ib.


55 75
64 '71
79 87
4.6 94
47 61
39 6c
51 67
42 ..73
35.. .1458
74 '142
67 74
51 50
73 62
107 54
179.. 31
121 32
163 26
166 28
139 20


Mil. _Mil.
lb. Ib.


-35
32
32
12
12


51
28S
101
36
6
S
8
8
45
103
47
79
40


-133
125
-139
127
144
95
96
59
79
94
123
85
87
42
36
64
98
38
38


Mil. Mil. Mil. .;
Ib. .

98 3 1,678 :
112 3- 1,673 .
150 3 2,177. ..
'15,' 3 1,834.
182 .4* 1,720
98 3 1,3131
134.. 3 1,s05
110 7 1 81 :
475 20 2,590
363 9 .2,285.
o40 6 2,772
205 .6 1.,844 .
125 5 1,800.
7- 5 4 1,70 9
50 9 1.,969 .
79 3 949. -.
76 4 963.. ,
104 5/ 980Q' .
'14s 2 902
::


a'r.: 50 -15 6 41 41 1 1 9 1 1 166

from reports of..the Bureau. of the Census. Total computed from unrounded '

1 aes babaftu kernels and oil, p&1m kernels ahd oil, murumu -kernels, ouri-
els. 'ai.ttiie" kernels.
Ias flaxs. ed And.-. linseed oil, peri-ill seed and oil, tung oil, and oiticica

~dides cashew-shell oil, Japan wax, kapok seed a.d oil, hempseed and oil, must- ,..!
da, olive oil, "foots".and inedible, rape oil, teaseed oil, vegetable tallow
ther vegetable fnts andl oils."
des corn oil, cottonseed and oil, edible olive oil, shelled peanuts (in 1944 ..;
and peaaut oil, sesame sced and oil, soybean oil, and sunflower oil.
an 500,000 pounds.


-
rl
r
I
I;


4 : I'
.. "",!i,8,









Import Qot a of 200,000 Tons Inposed

the Phillpiine Trade .Act, signed May 1, 1946, perTni: 200, ei n
of coconut oil fron the Philippine: Islands to ehter the TUlt'e. Staei. 4 e
of. duty eadch year front 1946 to 1954. Thereafter, the duty-free a. .til
reduced IP,000 long tons' each year until; it becbnes zero, In 197.
also establishes a naximun for total imports of Philip.pine coconut. J:
both free and dutihble at 200,000 tons each year fron-1946 to 1. 0PX
Under previous legislation, thelewould have beeh no lihitatibn on thei!:-i.i
quantity: of Phidippina coconut oil' imported Aft'er July 3,' 1946, -but;,t li'
entire quantity imported woulf. have become dutiable at 2 cents per pound~
rate now. levied on coconut oil fron foreign countries other than Cuba. i
war imports of Philippine coconut oil reached a peak of 181,000 long t6nt!.
.1941., and y'-.e considerably smaller in other years.

Provisions of the Philipiine Trar.e Act may.be suspended by the P.A
of the United States if he finds that the Philippine Governnent is not eaa
ing.out certain measures, stipulated by the Act, to grant benefits to'thb:
United States in return for the benefits accorded to the Philippinesb'y st
Act.


r.



'. : :
"








I



'... *
f

S ,-r.


Copra is not nentioned in the Act; imports of all copra remain duty-free .:;
Sin unlimited quantities, regardless .of origin. The Act provides that the, ,:?
excise tax on the first domestic processing of coconut oil of foreign 0tlg0.i
Except front the Philippines shall c-r.tinue until July 4, 1974 to be 2 cent.Br.
per pound nodre than the rate applicable to coconut oil of Philippine..
": origin (ndw .3 cents per pound). 'This preference nay be suspended, howeverr'
(as-'it has been since the beginning of the war) in periods when supplies .:O:
Philippine copra or coconut oil for tho United States are deternined .y'y 'fi
P' resident in consultation .with the Philippine Governrent to be inadequpt.
Under the terns of the Act the 2-cent additional tax on coconut oil -of ioai.
* Philippine: foreign origin would. be terminated. July 4, 1947.

Civilian Consumption of Food Fats Reduced in 1945; .
Further Decline Likely This Year .i

S isappearance.of food fats into civilian channels in.1945 is tiffW
at 42.3 pounds per person, about 2 pounds less than a year earlier and, gi
Srately 6 .pounds below the 1935-39 average. Civilian consunr-tion f' bQ'h Wbi
and lard declined materially in 1945, largely because of reduced. 'ou.ltit. t i
' contrast,. 1945 civilian consunrtion of margarine and shortening was moderat41
larger than a year earlier.


''











Butter -"a : rgane. okling :
s(aAtual s Lard. ::(fat con-: Shortening: and salad a Total
Sr ht .. tent). oils 1/
SPdunds P' p s Pounds Pounds P-ounds Pounds

ges
B9..9 16.7 11.0 2.3 17.T. 6.3 48.0

A. 16,9 14.7 1.9 s 9 7.5 50.0
15.9 14.1. 2.2 10.4 8.2 50.8
2 15,6 15.6 2.2 8.9 7.6 .47.9
&S 11.7 14.6 3.1 6,8 6.4 .45.6
S12.0 13.8 3.1 9, 6.5 44,6
S1. 124 3.3 10.0 6.0 42.3

ocludes some animal fat and edible oils used in salad dressing, mayonnaise,
ry goods, confectionery, potato chips, roasted nuts, canned fish, and canned

SComputed from unrounded num~-ers.
Prelimin ry.

A.:.. further moderate decline in total civilian supplies of food fats, per
|rrtoanf is likely in 1946. The decline will occur mainly in butter. Supplies per
abn of food fats other than butter may not be much different in total, from .
:j945'.

Creamery butter production in Ja:nuE.ry-March 1946 totaled :-nly 212 million
tu.aids, 89 million pounds (30 percent) loss than a year eurliei. Preliminary
:iieports for April indicate a similar porctntage lag behind 1945. Butter produc-
[ian may be expected to cntinuu under that of last year, u.t least until fall,
;bitt fall, butter output was extremely low, reflecting increased sales of fluid
'14i1i, cream, and ice cream following renoval of most wartime restrictions in dairy
.,pr.ducts.
Output of l,.rd end rendered pork fat in 1946 will be moder-tely larger
':jan a year earlier. Pruc'ucti.n in fdc:er"-lly inspected plants in the first 4
'lorths this year totaled 522 million pounds, 18 pjrcet more than a year earli-r.
.ing the spring and suiumnir. lard output probably will remain Lbovo the level
Sa 'year earlier, refloctin, the l2-p..rcent increase in the fall pig crop lIstyar.
: Production f the four edible vegetable oils (cott'jnseed, scybean, corn,
d peanut) this year will be moderately less than in 1945. There hus been a sub-
;;tan tial reduction in cottonseed-oil output in the first half of the year. By
ai.ry 1, 1946, over 60 percent of tn;- 3,200,000 tons of cottonseed estiri tod to
i available for crushing. in the 1945-46 season had already be'n crushed. Pro-
.ttion of cotton-seed oil between January 1 anr. August 1 this year will be approx-
tely 400 million pounds compared with an output of 675 million pounds in the
responding months of -1945
.. Militr.ry procurement :f f'. c fats is sh-'rply reduced this year, but the
?ite:t of this reduction on civilian cupplies is partly offset by the increase it
4 l90 i4 population.




w w S W


I f


- 2 -


DSE OF

POUNDS -
i imt ews-j I "


2.5




2.0




1.5




1.0




0.5




0


FATS IN


PRODUCTION OF SOAP, UNITED STATES, 1931-4
7-:. ;:


I~'
- I 4


. N
,


"to .
-, 4 .


-'- For direct civilian _
^ ^ '^ '^ rT


Sconsumptioh *


SFor other use*"


1931


1934


i.- -


1937


1940


1943


t 1 -


* NOT ADJUSTED FOR CHANGES IN STOCKS OF FINISHED SOAPS
A FOR SOAP USED IN MANUFACTURE OF RUBBER, TEXTILES, AND OTHER NONSOAP
PRODUCTS: AND MILITARY PROCUREMENT AND EXPORTS


U 5. DEPARTMENT OF AGRICULTURE

1 .-


NEG. 45954 BUREAU OF AGRICULTURAL ECONOMICS *


Total production of soap, though less than in 1944, was relatively large in*1945.
But military procurement of soap also was large, and exports (chiefly for Eiropean
relief) were at a record high. The supply of soap available to civHlians in 1945 was
the smallest since 1938.
Military procurement of soap in 1946 is drastically reduced from the 1945 level.
Undr present quotas, total use of fats in soap manufacture'for civilians will be about
-the same as in 1945, but the civilian population is about 8 percent larger this year
than last. Stocks of soap fats are now unusually small, but may increase moderately in
'the latter part of the year if scheduled imports of copra from the Philippines are met.
"Demand for soap fats will continue strong in relation to supply until mid-1947 at-least.







*

*** 1. 9


* ; *,


* "--. .


4.


* 4.


1946


,,,,,,,-,,,,,,------------,,.


-------------


-~ ;~i;;
r;.
--- ---.


-,- -T-- -T







IB 1945 A,)Iu 194b


SSupplies of Soan Fats and Rosin Reduced in 1945

Production and imports of the fats and.oils used principally in soap
Were smaller in 1945 th.n in 1944 but larger *than dn any other year since 94l.
' Otput of inedible' tllow and greases declined nearly 2b0'million pounds in
S 1945,'to 1,751'million pounds. Use of lard in soap was reduced by about 95
Smillidn pounas co6tared with 1944. Production of fish oils decreased about
30 million pounds to 174 million (preliminary). On the other hand, imports
of soap fats -- mainly lauric-acid oils and palm oil -- increased about 40
million pounds to a total of 390 million pounds.

Factory and warehouse stocks of major soap fats were reduced about
120 million pounds during the year, to a total of 492 million pounds on
December 31, which was the smallest since 1928. Tallow and grease inventories
were at the unusually low figure of 200 million pounds at the year-end, 70
million pounds less than a year earlier. There was also a reduction during
.the year of nearly 80 million pounds in fish-oil inventories. Stocks of
lauric-acid oils, largty held by the Government, were about 50 million pounds
larger at the end of the year than at the beginning. during the first quarter
of 1946 the Government released most of its stock-pile holdings of lauric-
acid oils to soap manufacturers and other industrial users.

With stocks of inedible tallow and greases declining rapidly in early
1945, users' and producers' inventories were limited by War Food Order 67,
Amendment 6, effective in early i:arch 1945. This order also provided a
limited preference for uses other than soap, by requiring producers of inedible
tallow and greases to reserve 50 percent of Pach month's production to fill
orders for nonsoap uses. The use-preference provision of the order was ter-
minated October 1, 1945. Inventory restrictions, however, were continued in
effect.

Use of rosin in soap in 1945, totaling 122 million pounds, was 71
million pounds less than 1944. Restrictions were established in late February
1945 on the use of rosin in civilian soap, as well as other civilian products;
by War Production Board Order M-387, to conserve supplies for war purposes.
As a result, the rate of use declined steadily during 1945. Fourth-quarter
consumption of rosin in soap was only 16 million pounds compared with 42
million pounds in the first quarter. Restrictions on use of rosin were ended
in early February 1946.

Increasing quantities of tall oil and tall-oil fatty acids apparently
have been used in soap in recent years to supplement short supplies of soap
fats and rosin. Tall oil also has been used in the drying. oil industries,
particularly in paint and varnish. Production of crude tall oil has been
increasing since 1938, as the following data (reported by the Department of
Agriculture) show:


I/ Coconut, palm, palm-kernel, babassu, and fish oils, and inedible tallow
and grease.






MAY-Jn 1946 14 -


Year beginning April 1.000 tons Year beginning April iOQ-00 t

1937 ............... 11.3 (Estimated) 1942 ................... 39.4
1938 ........... .... S.I.(Estimated 1913 ................... 70.4
1939 .............. 13.3 1944 ................... 8.1
1940 ............. 18.4 1945 ................... 94.8
1941 ............... 26.9

Soap Output Also Reduced in 1945;
Civilian Supply Smallest Since 1918

Total use of saponifiable materials in soap in 1945, including tall
oil and rosin, was 10 percent smaller than in 1344, but larger than in any
earlier year except 1941. (Table 8).

Exports of soap inr,945, including shipments to U. S. territories,
totaled 75 million pounds.(in terms of fat content), compared with 44 million
pounds in 1944 and a prewar average of 31 million pounds. Procurement of soap
for use of the armed forces in 1945 was slightly less than in 1944 but sub-
stantially more than in any other year. Use of soap in the manufacture of
synthetic rubber, textiles, and other industrial products also was slightly
less than in 1944 but larmgr than in other earlier years. (Table 7)

Estimated use of fats for the manufacture of soap for civilians,
excluding rosin soap, amounted to 12.6 pounds per person in 1945. This was
the lowest rPr-person civilian use since 1938 and compares with 14.0 pounds
in 1944 and an average civilian disappearance of 13.5 pounds in 1937-41.

Quotas limiting each manufacturer's total use of fats and'oils in the
manufacture of soap for civilians were reduced in 1945. The quotas for bar
and package soap (types commonly bought for household consumption) were
reduced from 90 percent of base-p-riod use (1940 and 194l) in 1944 to 85
percent in the first quarter of l. 45, and to 74 percent in the second and
third quarters, then raised to 78 percent in the fourth quarter. Quotas for
bulk package soap (purchased chiefly by laundries, restaurants, and hotels)
were reduced from the 1944 level of 110 percent to 90 percent in the first
quarter of 1945 and to 84 percent for the rest of the year.

Percentage Use of Tallow tnd Grease
Continues High: Lauric-Acid Oils Low

As in earlier war years, an unusually large percentage of the fats
used in soap manufacture in 1945 consisted of inedible tallow end greases,
and a small percent-ag consisted of lnuric-acid oils. (Table 8 ). Inedible
tallow and grease comprised 60 percent of all saponifiable materials, includ-
ing rosin, used in soap in 1945 compared with h9 percent in prewar years.
Fatty acids and other secondary fatty products, and tall oil, comprised 17
percent compared with 10 percent before the war. Lauric-acid oils constituted
only 5 percent of the total compared with 22 percent prewar.



,If 1Also includes military procurement for civilian relief abroad and arocurene
by the American Red Cross. "A



























OS





, p i i

!i ,.0 4i a -
lP.




D0 0
' *. .. S .. .. ..



, g


I




eO *N



..t .. ..P. .


iso i
.4





-I I I I arl
0a




1P-




U 61.450 K 01





0 Tl u
4P
a a e





if


aI-





.. 0
S
03 a a ." ** aaa


Si






;.:. i.
:D *
O. .1.
*i .
a '..,


I5 r'
a SmS.


ad S




54%-.


5- -Il .- -4 1 r I


O0 -- 1iN 10 C1 ri- % l* OnO 00 W
-1 N LUq rU 4 N'nCU lb n W NO; ;b
.4..I rl .4H r -l... r4 .l r. .l H- r-I -I




60 .- irnN 00 rb H4 UNiniN I OI k0


(TwO M lb lb to to -n wi n.e -fi
.:t0* inAO irrniniP-IrtoDt o
-rl 4 t r l .-' r. l. .-U ar- l. I
r-f f r4 r.4 N4 r 4 r-1 Coj r4 r. 4 ,


aa I I fr I iOO i 01 n t 5) CL
a I





r r14mIar4 r4.i 44l. 4 CU .r4 cu
J 010 CuCr* O 00 r-D ao'


01 0u 0 c oA-t WO I mW rO f-o 0no
H Ii-t t m. u r-I0 ORi01 o















.44
'A r O s- o a o T no a% K% in


I 4 -- r-l rA r-c..m ( a ON l 1 NU







0000 C 0 000000 N N
O mI -Cia' LcU W01 % rto mIn 0t
I J .l I. r4 r IN H r-lb i 4 C\a N-a 4 W CU








O tU l.4 0l'.P- l lbO CAu Din.
U, PI nD rIoso I- w to 1-R r C-.



eM^ a r a f a l -l U a.aa. .aa M aa a4 1 a





a.% F- int p0r-to i01 t r-I CU o i6n
0 I 000 0ifi-flzl00 0 i OILn 1 Z0000


0 ir 4 -4r-4 r4M rl r-4 r4 r4 CU i in r i-i
aioi a ao (oarc o o





a. J 4i4r a-- ar a 1-0 mo1 .r4i.
T rQJ K% NlD Ir-N- "I% l%.-r NJ,.U ACl
MMMsalM MP M


1~


Trl U ** 61
14 u in
- Id -







Md a S
*u .





*mO
0c -
da 04

0 4 0
4o 40








S 0e
o o adj




1 P.



&4 4

a.-0 00 q









a ..4 < -I .
0 '"*
E S-o -



-1 I 50










tr- *3
S P. U -










o a ) 0
6. r. D4
























0agg 1
o o4 d




00.- C t f
dk 1IB



So 4 u3
lo





ba4 C .11 *




B, )

















Pli^c c'^l'S^


.0

.1 3a
61
43


.. ..


.. **


-do
.1


ad
.l











r-4





S
%I






0
52












a .







.4





0
0






mo'
o %










0 .
a 4








ad














0.
a. .













S ..
ch


on












'f:!';







,.,. C,...,


Table 8.- Soap: Fats, oils, and rosin used in manufacture, 1941-45


I : : : I
Item 1941.000 1900042 b. 19.000 43b. 1944.000 194500 /.

a 1.000 lb. 1-000 lb. 1.000 lb. 1.000 lb. 1.000 lb.


Hard oils (tallow class):
Slow lathering -
Tallow, inedible .........
Greases ..................
Whale and fish oils ......
Palm oil ................
Tallow, edible ...........
Lard 2/ ..................
Oleoatearine .............
Total .................
Quick lathering -
Coconut oil ..............
Palm-kernel oil ..........
Babassu oil ..............
Total ................
Soft oils:
Secondary fats and oils
and tall oil / .........
Olive oil, sulphured and
inedible ................
Soybean oil ..............
Cottonseed oil ...........
Corn oil .................
Castor oil ...............
Linseed oil ..............
Peanut oil ...............
Sesame oil ...............
Oleo oil .................
Bapeseed oil ............
Olive oil, edible ........
Neat's foot oil ..........
Other vegetable oils .....
Total .................
Total fats and oils ..
osin 4~ ....................
Total saponifiable
materials ...............


1,057,303
310,487
76,312
129.871
4,826
89
70


1,188,923
338,974
72.401
55,865
634
96
483


896,286
463.811
44,972
32.621
4,652
74,039
275


1,005,777
524,156
50,900
19,675
43,761
176,266
211


952.335
412,105
114,3 46
24,452
32,067 :
82,070
---


S1.578.958 1.657.376 1.516.656 1.820.746 1.617.775

: 484,124 14o.487 142,346 131,558 59,352
: 1,113 1,028 1,840 1,938 29,967
: 29.753 1q.105 25.814 13.006 32.477
S 514.990 160.620 170.000 146.502 121.796


S 190,000 190,000 280,125 331,643 393,505

S 10,584 5,188 5.486 2,956 1,986
24,737 31,510 15.428 3,258 4,219
3,010 2,863 991 586 1,695
4,948 4,102 831 887 721
1,976 1,599 878 16,962 1,399
: 2,278 4,019 1,697 2,253 915
S 597 485 256 564 846
S 304 189 70
S189 205 2,160 3,243 3.685
: 5 --- 1 ......
8 4 27 11 83 18
35 19 68 9 7
: 1162 2.48 675 3.164 2.-
S 23q.qq 242.6q3 308.677 36560S 411.3
S .3338.57 2.060.689 1.qqS.3 2.332.8,5 2.150.509
: 103,061 97,850 119,804 193,144 121,522


2,436,918 2.158,539 2.115,137 2,526,000 2,272,027


Fats and oils, from reports of the Bureau of the Census; rosin, Naval Stores
Research Division, Bureau of Agricultural and Industrial Chemistry, U. S. Department of
Agriculture.
/ Preliminary.
SIncludes rendered pork fat.
/Inedible animal stearin, grease (lard) oil, tallow oil, foots, palm oil residue, tall
oil, red oil, stearic acid, and other fatty acids. Before 1943, estimated largely on the
basis of reported total factory consumption of these items.
4/ 1941 and 1942, consumption of rosin was reported on a crop-year basis (April-March).
Data are placed in calendar year in which most of the season occurs, e.g., 1942-43 data
are placed in calendar year 1942. 1943-45, annual totals computed from quarterly reports.





9 .* .


ig

I.
.4'
i


i


:
:

]
:
:
: *
:
!


=
:






7.; .9 xa:aj,q.-vBe.ox 0 eaUmUg ,ypes "o .Aas unau uijner BgLYpu.LxS.Luauur
materials in op, as percentage of total use, average 1937-41,
annual 1944 and 1945

Material.. : average 1944 1945 11
19 3-41 : _____
--: PercePerPercent Percent

dible tallow and greases ....: 48.7 60.6 60.1
Garic-acid oils ..............: 21.6 5.8 5.3
iiOt her hard" nils and fats 2/ 12.6 11.5 11.1
Soft" oils 5/ ................ 2:6 1.3 .8
Secondary fatty.materials ::
.. and tall oil / .............. 9.6 13.1 17.3
iPs. ....... ...... 4.9 7.7 5.4

S Total .............: 100. 100.0 100.
ased on table 8, page l of this report.
J. Preliminary.
Mainly palm.oil, fish oils, edible tallow, and lard,
Mainly inedible olive oil and olive oil "foots", castor oil, and srytean
dil.
_/ Largely refining residues or foots, fatty acids, and tall oil.

Soap Supply Per Person Reduced in 1946
Under Present Quotas

If quotas controlling manufacturers' use of fats and oils for the nnnu-
;.acture of soap for civilians are maintained at present levels frr the balance
of 1946, the use of fats in civilian soap this year will be atnut 3 percent less
in total thah in 1945. And with an 8-percent increase in civilian population,
resulting chiefly from demobilization of military personnel, soap sunDlies are
considerably-less per person this year than last.

Production of S Fats Increased in 1946;
To Decline in 1947

Apparent uroductioh of inedible tallow and greases in January-March
1946 amounted to 499 million pounds, 3 percent more than a year earlier."Factory"
tallow showed sa increase of 7 p-rcent, partly as a result of an increase in the
..average live wAght of cattle slaughtered. Cattle are expected to average .sone-
what lighter in:weight compared with 1945, during the sunner-and fall, and total
cattle slaughter for the-year is likely to be moderately smaller than last."Fac-
tory"grease prrAuction in January-March was up 5 percent from 1945, reflecting
an increase in the number of hogs slaughtered. With the pig crop last fall esti-
mated to be 12 penent larger than the 1944 fallcrop, hog slaughter is expected
to continue ahead of 1945 through the spring and summer of 1946. Spring .igsa-ro
expected to be iarkFted relatively early which will mean a larger slaughter of
hogs in the fourth quarter this year than lnst. Production of Preases rotbably
will continue to show an increase nver last year's level through Deceuter.

Prospects for animal-fat production are less promising for 1947 than
for 1946. Cattle slaughter apparently is trending downward, and fewer cattle
may be slaughtered in 1947 than in 1946. A rather sharp decline in hog slaughter
is anticipated beginning early in 1947. Because of the unfavoratle hog-cornprice





KLT-JUNE 1946 18 -

ratio in prospect,.the proportion of.sprihg pigs marketed in October-December
this year is likely to be larger than usual, and considerably larger than last
year, when the proportion marketed in the fourth quarter was relatively small.
This will mean that a much smaller proportion of the spring pig crop will remain
to be rark ted after Decenber 31 this year than last. In addition, a material
reduction in the size of the 1946 fall "*ig crop is anticipated, which will
nean fewer hogs for slaughter in the spring and. sunner of 1947 than in the
spring and summer this :ear. Production of inedible tallow and grcasen may
be 100 million to 150 million pounds smaller in 1947 than in 1946; Produc-
tion'of edible animal fats also willbe reduced next year, particularly that of
lard.

Military procurement of soap is drastically reduced this year, and
some increase in total stocks of the fatp and oils used principally in soan is
likely in the latter half of 1946, if quotas for civilian use of fats and oils
are maintained at present levels. Stocks of the 0ajor soap fat~ on April 1
were nearly 100 million pounds less than a year earlier.

TRENDS IN DRYING-OIL PRODUCTS, 1945 AND.1946

Use of Oils and. Fats in Drying-oil
Products in 1945 Least Since 192

Use of primnry oils and fats in paints, varnishes, floor cov-rings,
oilcloth, and printing inks totaled 755 million pounds in 1945, the smallest
since 1938. In 1944, 781 million pounds were used and in 1941, the peak
year to date, 1,052 million pounds. Military procurement of iint, varnish,
floor coverings, nd oilcloth in 1945 amounted to apiroxin mtely 120 million
pounds, fat content, about the same as a year earlier. With this deduction,
use of oils and fats in civilian drying-oil products was about 635 million
pounds,the smallest since 1934 (Table 9).

The reduction in output of dryinp-oil products for civilians in 1945
was due chiefly to a decline in domestic nroductinr of linseed oil and in
import of flaxseed. The supply situation tightened rapidly in early j145,
and manufacturers' quotas for use of oils and fants in paint and varnish, floor
coverings and oilcloth -- maintained throughout 194h at 70 percent of base-
period use -- were reduced in the first quarter of 1945 to 50 percent and_ in
th$ second quarter to 4o percent. With the harvest of the new-crop flaxseed
last .sunner quotgg were increased to 45 percent of base-period use. In the
fourth quarter, quotas were extended to cover oils and fats for-both military
and civilian use, and were placed at 75 percent of base-period use. It was
estimated that military purchases would take bout 10 percent, leaving at that
time about 65 percent of base-period use for civilian products.

Users of linseed oil were prohibited by WFO 124, effective February 1,
1945 front increasing inventories above a 30-day supply. This limit was raised
to a 60-day supply on September 1, when supplies were eased somewhat by crushing
of new-crop flaxseed.

Reduced manufacturers' quotas in 1945 for civilian products were re-
flected in declines in total use (including nilitory) of oils and f.ts in
paints and varnishes, and in floor coverings and oilcloth (Tables 10 and 11).







i i-ii i
19

UTILIZATION OF FATS AND O1LS IN DRYING-OIL
PRODUCTS, UNITED STATES, 1931-45
:*IPOU N DS

; _TOTAL T -




.600'.

Excluding military
..300 '- procurement


0 I


990


600


300


fn


1931 .1933 1935 1937 1939 1941 1943 1945 1947
PAINT AND VARNISH. FLOOR COVERINGS AND OILCLOTH. AND PRINTING INK

UIJ. DEPARTMENT OF AGRICULTURE NEG. 45973 BUREAU OF AGRICULTURAL ECONOMICS




Despite an increase in domestic flaxseed production, supplies at drying oils
during the war were limited by ditficulties in importing foreign oils and oilseeds --
notably Chinese tung. oil and Argentine flaxseed -- and by large exports of linseed oil
to the Soviet Union. Use of drying oils in civilian products in the United States was
S.further restricted by relatively, large military procurement.
Supplies of drying oils may be increased in the latter half of 1946 by augmented
imports of flaxseed. With industrial production at a high level and building activity
rpcreasing rapidly, civilian demand for drying-oil products will be strong until mid-
?1i:97 at least.


Paint and varnish




Floor coverings and oilcloth

I l l I I l l




MAY-JUNE 20 ..

Total use in pfiints and varnishes was about 30 million pounLs less in 1945 than:I
in 1944 and about 250 million.poun sa less thao eak use in 1941.

Use of oils and fats in printing inks, unrestricted by quotas, rose to
37 million pounds in 1945 (table 12). This vas larger than in any earlier
year and eonpirns with previous 'naks of 29 million pounds in 1941 and 50
million pounds in 1944,

Use of Linseed and Castor Oils Reduced in 1945;
Use 'jf Other Oils Increased

Use of linseed oil in drying-oil products was reduced from 624 million
pounds in 1944 to 584 million pounds in 1945. This decline was a result of a
substantial reduction in output %f linscod oil lost year. Production of oil
from domestic flaxseed in 1945 totaled unly 454 million pounds, 278 million
pounds less than a year earlier and the loc.st since 1d40. With imports of
flaxseed in 145 the smallest in 36 years, output of linseed oil from imported
seed declined to 72 million FounC's, 132 million pounds less than a year earlier,
Stocks of flaxseed were virtually exhausted before the 1945 domestic crop was
harvested; total output Sf linseed .il in April-June was the smallest for any
quarter sinee 1938. In early May 1945, the Depyrtment uf Agriculture released
Government stocks of linseed vil, anmuntint to aboWut 75 million pounds, to help
meet manufacturers' quotes.

Exports if linseed .il t.- the S3viet Union, which totaled 309 million
pounds in 1944, were discontinued in 1145. Exprts of linseed oil t. Lll des-
tinations in 1945, ir:cludil-k il that ;.'tssed through the U. S. Customs enroute
a from Argentina to Francc, totaled 24 million ;ounts cnompred with 314 million
pounds a year earlier. Factory and wurchouse stocks were reduced from the
relatively high level of 264 million poun-s at t.,e beginning of 1945 to 180
million pounds at the year's end.

The supply of dehydrated cnstor .il was nmterially smaller in 1945
than a year earlier as a result ,f rcduces. imports ,f Brazilian cast-r beans
and oil. Use of the dehydrated oil in drying oil products totaled 45 million
pounLs, 20 million priunds less than aL ear curlicr.

Domestic product "n of tung oil ani imp":rts of Brazilian oiticioa oil
increased in I,15, ';, d use ...f these two oils als, increased. Factory and
warehouse stocks of tung oil were reduced from 20 million pounds at the be-
ginning of the year to 6 milli..n founds at the iend.

Use of fish oils in drying-oil products increased from 40 million
pounds in 11-44 to 50 million pounds in 1945. Use of fish oils in soap also
%acz ilcro ocd, doopito c decline in production, and stocks of fish oils were
reduced about 80 million pounds during tho ycar.
As in eLrli r war years, use .-.f soybean oil in drying-oil products
was limited ini 1945 tc quantities authorized Ly the Department of Agriculture,
under VFO 29. This use Jf soybean oil wv.s r3stricttd .,'about as severely dur-
ing the first three quarters of 1, 5 as a yc-r earlicr, out was permitted to
increase in the l]st quarter. The tot'..l fr 1E45 was 26 million pounds, 34
percent more than a year earlier but 15 Lercent less than prewar.







I.
I-
I;


Tolume of DryEig Oils Increased in 1296;
But Demand Exceeds Supply

Production of linseed oil from domestic flaxseed is expected to be
Romewhat larger in 1946 than in lq45, reflecting the sharply increased crop
of flaxseed in the United States in 1945. It was.announced in late March that
arrangements had been completed to buy about 10n,O00 tons (3.6 million
bushels) of Uruguayan flaxseed for shipment to the United States and Europe.
By mid-May, approximately 1 million bushels for the United States was being
loaded or was afloat. Negotiations for Argentine flaxseed have been in _o-
gress for some months.The Argerfi crop harvested in oarly 1946 was moderately
larger than a year earlier, and export supplies have increased Little or no
flaxsee4 is expected from Canada this year.


Production of Brazilian castor beans is believed to be larger this, year
than last. Imports of castor beans, and oil in January-Mareh-1946,at-41 mil-
lion pounds, oil equivalent, were 10 percent larger than- year earlier.

About 40 percent more fats and-oils will be used-in civilian drying-Oil
products this year thah last, if quotas are continued at-present levels. But
civilian demand is strong and exceeds current supplies by-a wide margin..-


Table 9.-Domestlt utilization of oils and fats in drying-ofl products United
States, 1931-45


: :"Floor -- : -
: Paint ':overins!s Printing:
Year I and : and a : inks ; Total
:varnish !oilcloth t 2/
: 1 /2 1 :
1.000 lb. 1,000 lb. 1,000 lb. 1,000 lb.

1931 ... 524,909 73.473 13,284 611,666
1932 4..: 4o6,367 57,515" 10,431 h74,313
1933 46 1,1I2 ".69,938 13.419 544,499
1934 .: 506,091 67,811 15,544 589,446
1935 ...: 6o8 ,788 80.831 ...18,000 707.619
1936 ...: 652,064 101,334 20,206 773,6o4
1937 ...: 701o,01 101,380 26,213 528,607
1938 ... 564,773 84,100 21,884 670,757
1939 ..: 675,973 107,721 22,873 806,567T
1940 ...: 654,175 111.813 21,178' 787,166
1941 ...: 886,189 136,040 29,319 1,052,348
1942 ... 774,435 116,235 17,339 908,059
1943 ...: 691,033 74,466 22,483 717,982
1944.,.: 667,955 83,409 30,020 781,384
1945 ...: 639,610 77,907 37,291 754,808


: iTotal for
l Military:U.- S-.. civilians
: pro'- iand for expert
:curemeht' :o-f- manufactured -
S/ a '- products
1,000 lb.- 1-,000 Ib.


2: 20,000
!1 50,000

j150 ,000
120,000
120, QO


6-11. 666
.474,313
544,499
589,14W6
707,619
773,604
828,607
670,757
806.567
167.166
1,002,348
808,059
637,982
661;384
63,808


factory consumption in pint and varnish, reported by the Bureau of the
ensus, plus the difference between total domestic disappearance and total
factory consumption of linseed oil, tung oil, perilla oil, ahd oiticica-oil.
/ Factory consumption (Bureau of the Census)
V/ Procurement by the armed forces of drying oils and of paint, varnish,
floor coverings, oilcloth, and other roated fabrics in terms of oile and fatal
used in manufacture (U. S. Dept. of Agriculture).
j Estimated.
5 Partly estimated.


'~e~il~;i08


I


- 21 -





MAY-JUTNT 1946 22 -

Table 10. Estimated consumption f oils 'and fats in
.paints tnd varaishes, United States, 1941-45



Itum : 1941 : 1942 : 1913 : 1944 : 1945 ./

.1,000 1b. :1,000 T,:1,0OO0 lb.:1,0001b.l,000 i .

Linseed oil 2/ ...........: 650,698 654,904 3/614,006 516,150 483,203
Castor oil, dchydr..ted :( 44,240 50,473 12,674 63,813 44,245
C astor oil, f;N. 1 Lu;d N.3:( 3,673 12,643 7,703

Fish oil .................. 40,653 21,235 25,153 37,880 42,994
Soybean oil ...............: 41i594 25,307 20:462 19,105 25,624
Tung oil 2/ ...............: 63,332 10,396 9,667. 8,081 16,939
Oiticice oil 2/ ........o.:6/35,766 8,094 2,668 8,82- 16,508
Perilla oil 27 ............ 6,959 3/ L,196 1,6%G 411 161
Coconut oil ...............: 919 180 37 32 .24
Cot+tunseu' il ............. 196 4-18 161 74 174
Rapeseed :il .............: 103 40 ?0 12 9
Corn oil ............... .: 848 63 29 18 19
Babassu oil s...S.......... --- 23 -- --
Palm oil .................: --- --- -- -- 1
Olive nil, inedible. .......: 4 2 .
Peanut oil s...............: -- 5 ---
Other vegetable oils ......: 5/ 300 234 673 851 1,912
Gresoe .................... 150 206 99 41 22
Tallcw, inedible ..........:. 364 160 15 7 44
Marine mnmanl oil .........: 26 3 --- --- 28
Neat's-fort oil ...........: 37 40 23 7
0120 Ail ............,.....: -- 2 -- -- --
Tallow, edible ............: -- 4

Total ..........: 886,189 774,483 691,033 667,955 639 610

Comoil-r from reports 4-"', Bureau of the Gen.us, c;:cept Cs n'tted.

/ Prolininary,
2 Factory consumption in paint and varnish, reported by tho Buroau of.-tho Consus,
plus the difforonc bot-voon total donostic disappearance -nd total factory consunp-
tion.
/ Rovisod,
/ Estinutod as difforonco botwoon ir.ports for corsur .tion of ci.icia oil and
roportod uso of "other vogetablo oils" (assunod to bo .citicin oil) in linoloun,
oilcloth, and printing !nks,
V Estinato.




I'


- 23-


le ll.-Faotory consumption of oils and fats in the uanufacture of floor coverings
and oilcloth, United States, 1941-45

Item i 1941 : 1942 *. 1943 : 1944 :1945 I

,000 lb. 1.000 lb. 1,000 lb. 1.000 1b. 1,000 lb
..sbed nil ...............:: 110,236 108,651 72,378 79,994 66,586
n oil...... .............. : 14,682 4,781 1,489 1,926 6,359
'Optor oil, dehydrated .9...... 211 90 155
Castor oil, No.1 and No. 3 ..,: 113 9 2
Soybean oil ...................:9 7,666 480 273 4 6
iag oil ...............1...: 1896 82 2,337
0 coica Oil ...................: 723 368 -- 1 39
I.Perin oil ................... 30 36 2--
Gorn oil .......*..............t 1 -
Babassu oil .................. -- 2 --- -- -
Coconut oil ....... ......... -- 2 -

Marine mammal oil ........... -- --- 6
Tallow, inedible ............. 1 1 -- -- -
Olen oil .................... f_ -- -- -. --

Total .'.................: 136,84o 116,235 74,466 83,409 77,907

compiled from reports of the ureau of the Census.
i/ Preliminary
/ Reported as "other vegetable oils"; assumed to be oiticica oil.




MAY Y-JUNE 1946 24 -

Table 1?. Frctnry consunption of Oils and fnte in the
nianufacture nf printing inks, United St.tes, 1941-45


I
: .
item 1941 : 1942 : 1943 1944 1945

:1000 lb. 12000 lb. 1,000 lb. 1,000 lb. 1,000 Ib

Linseed oil .............. : 23,547 15,322 21,362 27,477 .34,yc
Castor oil, dehydrated ( ( 29 220 323
Castor oil, No. 1 and No. 3: ( ( 21 *515 166
Tung oil ...............: 2,960 255 7 27 1
Pernlla oil ...............: 831 282 .. 182 76 24
Fish oll ..................: 179 97 112 109 282
Oittcica oil ..............: 2/89 278 11 213 444'
Cottonceel oil ............ 153 89 65... .. 1 7
Goybean oil .....-............. 255 141 4 2 pg9
Palm oil .................: i --*
Peanut cil ............... --- 5 .3
Rapesced oil ..............: .-


BaSbnssu oil .. .... ..... .:
Cocrnut oil ...............:
Corn oil .............0.. ...
Olive-oil foots ...........:
Other vcgertabl3 oils ......:
Grease ....................
Marine mainnal oil .........:
Tallow, inedible ..........:
Tallow, edible ............:
Lard ......................:
Neit's-foot oil ..........
0] eostcarina ..............


1
34

472
10
10
4
13


1
17
1

403
1-
*34
2
13

2


3

LI
38?
* 2"
12
5
10
20


5
8
292
5
13

13
13


Total ............... 29,319


17,339


22,493


Co:.piled fron reports .f tho Bureau nf thp Census.
j Prelimin--ry.
2/ Rep-.rtcd ,as "othir vertAble oils": tssur.cd to be citicicn nil.


30,020 37,291.







FOS-0lg 25 -

SGOVTiTMENT ACTIONS

Price Ceilings for Oilmeals Advanced

Increasps of $1 -"oer ton ih ceiling nrines for cottonseed, -ernut, soy-
beon, and linse d meals became effective May 13. :iaximum prices for "minor"
oilseed meals (orincioPlly copra .meel) worp increased 810 er ton on the same
date. This action, which accompanied increases in ceiling prices for feed
grains and wheat, was tiken to maintain i normal relationship between nil-
meal prices and f~pd-grain lorices.

Market auntations for nilmeals Idvnnrnd the fill extent allowed by the
new ceilings, Present auonttions for real, bgg"d, in carlots, are as follows:
Cnpra meal, Los An.=les, $59.50 jer ton: !nttonsneed meal, 36 percent protein,
f.o.b. mill, Gpnorpgi and Florida, $6Q00 ner ton:linsecd meal, h2 percent urntein
Minnea-oolis, S9.25 ner ton; -eanut meal, 4r percent orntnin, southeastern mil-
ling .~ints, $67.25 per ton; soybean meal, L1 percent protein, Chicago, $66.00
per ton.

Ceiling for Fl.nxseed Also Increased

The ceiling uric; for flnxseed was incrr"-sr'. 25 cents mr bushel, ef-
fective iay. 17, from $3.10 per bushel, Minnmepolis basis, to $3.35 per bushel.
This increase wn-s 'bout ea'ivalent to the increeced value of seed resulting
from the rise in lin=eed meonl -rice ceiling. F-t7rmrs are offered a su-port
for 1946-cro- flnxserd c.uiulent to $3.60 pr bushel, Mihnenpolis basis, with
the difference between sun--- rt and m,.rket -ricF. to be n.ode un by, direct oiy-
ments by the De.pnrtkaent of A:riculture.

Price Coilihg for 1946-Cron Soybeans
,2.10 per Buchel, Sam; ai Last Se-.son

A ceiling price of t2.i0 -jer bushel on '.rodacers' bulk sales of No. 1
or No. 2 yellow or green soyberns of the 19h6 crn; '.:s established by 1-Iaximum
Price Regulation 60F, effective Anril 11. This is the somao ceiling price Ps
that in effect for lqh5 cr.- snybeans. The. recent -'ncrease in ceiling prices
for swbean .eal is nearly equivalent to the subsidy tha.t has been paid
soyb:tn -orocessors by Commodity Credit Corporntinr.,

Trucker-merchants who tuy from farmers Rre allowed to sell soybeans
1 cent -bove the nr-'ucer ccil.ng, lus a tranponrt-'tion charge nrt exceeding
the lowest fre-iht rnte beti.cen the points of nrigin ar., destin-ti-n. Country
shi- Tcr (mainly elev-tors) ar- -ermitted the producers' ceiling plus 5 cents
per bushel, plus trnnsnort'.tion charges incurred in raking delivery to the
purchase er.

Sales of soybeans to be used. for send for planting the 1947 crop or to
be cleaned for use in fod products s (oth=r than crushing for nil) were exempted
from the order.




MAY-JUN. 1946 26 -

Coiling Prices for L.rd Raised Slightly

Maxim n prices for sales of lard by processors to non-Government buyqer
were increased one-quarter cent per pound by Amendment 57 to MPR 53, effective
March 13. The new ceiling fnr lard in tank cars at Chicagn is 13.05 cents ver F
pound. The new maximum for cash lard (prime steam lard, tierces, Chicago) ig
14.05 cents ner pound. This advance in lard ceilings, together with incroeasts
allowed for certain meat products, un.s granted aeen, uffet to recent wnge and
salary increases in the packing industry.

Axaend4ent 57 also -rovides for the addition of 1/2 cent per n-und to
the ceiling price when the lard is sold -to a procurement agency of the United
Stnte's Gnovrnmient.

Trans-Shinped Olive Oil
Exempted from Ceilincs

Imonrts if olive oil ..rought into a free-trade zone in the United S.tates
for trans-shSpment nbrnad were temnnrarily exempted from price ceilings by
ALenduent 58 to .IPR 53, effective Arril 29. On May 16 this exemption was
continued indefinitely by Anrndment 59 to MPR 53.

L-.rd Set-Aside Percentice Incre-,sed

Packers were required by War Food Order 75.3,Amendment 30, to reserve
each -woek a quantity if T.;rd and rendered :orkfat equal to 6 percent of the
total live weight of blgs slaughtered. This arienonent, effective M.~a 5,a-nlies
to federally inspected nlantr and to "certified" lr.~-ts under the Patman Amend-
uent, except in 11 Southea.stern Statep exemptionn reduced to 7 States May 12).
Prior to the present amenndent, the. set .side, 5 percent of the liveweight of
ho:.s slaughtered, applied entirel'- to lard.. Under the new amendment, an esti-
mated h5 to C0 percent of the 1,.rd and rer:pre(c. )nrk f-t nrodncer uund#r Federal
inspection will be reperv.-d co,.in-red ,,ith about 14 ..Prcent in the period Feeb-
ruary 10 to May 4.

Butter Undier S"t-Asie in Ma'." and June

Mi11itrry renuirenints for iq9 F to be mat fro: domestic Punplies are
tentatively csti.natd at 145 nilli-.n .ounds, con;p:.re.: with 250 million rounds
last year. The Army will obtain at least part of its 1946 butter r-nuirenents
for troops overseas front Denn.rk and possibly "-ustralia nnd Uew Zealand. Present
plnns indic-te th'it .,t-asides will be necessary this rcoat only in May end June,
when nanut 20 percent of the output vill be reservOc. for the military. L.st
ye;.r, butter w;ns rFs.erve, for Covcrnnent purchase front February through August.

Inedible Uses of Edible Oils to be Based
on 1945 xperienEe

Ar:enc'nent 10 to War Food Order 29, effective April 1, limits a manu-
facturets monthly use of cottonseed, peanut, .ybean,and corn oils in inedible
products to one-ninth of the quantity used in such products during the first
nine months of 1945. Formerl -, use of these oils in inedible productss was
prohibited, unless specific authnrination was obtained from the Eepartment of
Agriculture. During the war, with few exceptions, authorization was granted
only where the i1 w: s needed for military -urpose. On January 1, 1946,
Wnr nooc' Order 2q wns -.mended to o.,rr.it uce of soybean oil in synthetic resins-
at a monthly rate equal to the average nonthly use in the first half of 1945.




w


w


: "log 27 -
Under the present anenanent, this use will be allowed on the sane basis as
other industrial uses.
No change was made by the anendirent in existing regulations on edible
uses of the four oils. Users are still required to obtain specific authoriza-
tions each nonth fron the Department of Agriculture.
Certain MKrine Paints Exenpted
.roan-Quota restrictions
Use of oil and fats in marine paints for delivery to the U. S. Maritime
'Codmission or the War Shipping Adnir-istration was exempted front quota restric-
: tions under WFO 42a, by Anencnent 7, effective March 16. This anendnent also
S-..ncreased the quantity-of fats and oils any manufacturer is pernited to use,
without regard to quota, front 15,000 pounds to 20,000 pounds per quarter.
Soybean Oil Ex-Quota in Fish Canging;
Shortening Container Restrictions Modified

For canning fish, only soybean oil ray be used without regard to quotas,
under Anendnent 25 to WFO 42, effective April 1. Previously, any oil had been
allowed to'-be used for this purpose, without being charged against quotas.
.Anendment 25 also prohibits fish canners front accepting deliver-; of quantities
of oil which, added to inventories already on hand, would result in nore than
a 30-day supply.

.Amendment 25 allows manufacturers of shortening and cocking and salad
oils to pack in each container size a nininun of 95 percent of the quantity
packed in the corresponding quarter of 1944. previously, the n-iniun for each
size was 100 percent. The reduction in the mininun is nade because of the
recent cut in quotas of oils r.nr' fats for use in shortening, cooking oils, and
salad bile front 92 to 88 percent of bare-period use. Restrictions on the
ninirnurpack in each size of container were initiated last fall after consumer
rationir.g had ended, to preve::t undue versionn of shortening, cooking oils,and
salad pils to large containers for sale to large users.

Additional Soybean Oil Authorized to be Sold
Against Purchase of Olive Oil

It was announced in April that the Governnent would iscue licenses for
export of a axiinmu of 5,000 metric tons of soybean oil for export to Spain
and a-naxinun of 2,500 metric tons to Italy (p.-out 16.5 million rounds in all)
in exchange for purchases of equal quantities of olive oil. Similar arrange-
nents were made earlier this year for export of about 7.5 million ;omunJ.s of
soybean oil against -urchases of olive oil front Greece, Lebanon, and Syria.
In late May, export licenses were issued for quantities of soybean oil repre-
senting most of the allocations to Italy, Spain, Syria, and Lebanon (about
17 million pounds).

Combined Food Board to be Continued
to December 31

The whitee House announced May 8 that the Governnent of the United States
the United Kingdon, and Canadahac. agreed to extend the life of the Combined
Food Board to the end of 1946. This action wa.s taken to maintain international
control for another 6 Tonths over the distribution of scarce foodstuffs. Pre-
vious agreements had authorized the Board to operate until July 1, 1946.





K Y-JUKE 1946


- 28 -


*j.


RECENT DEVELOPMENTS

USDA Purchases of Fats and Oils
Continuinz Fairly Hi-h


Purchases of f-.ts --nd oils by the U. S. Department of Agriculture
(including margarine, soep., and soybeans in terms of fr.t equivalent) amounted
to 61 million pounds in March tnd 57 million pounds in April. The total for:.
the first 4 months of 1946, :-t 212 million pounds, was about the same as the:
to.tpl for the correspo'rninr -; riod of 1945. Lard continues to be the leading
fat repurchased. In April, n substpnt al quantity of coconut oil was purchased
for delivery to ITBRRA in lieu of an equivalent amount of Philippine copra
prEvi-usly allocated to U ITRRA.

Table 13.- Contracts for purchase of fats, oils, soap, and purchases
of soy.benns, by the Department of Agriculture, .1942-46


Iter. : 1942 : 1943 4: 14 1945 : Mar. Apr : Jan,-

:ilb.Mil. b.Mil.b.I.Mil. Ib.Mil.lb:Mil. 15.Mllb.


Butter ....................
Lard :.nd rendered pork fat
Oth-r primal fats an.d oils
Coconut oil ...............
Linpced oil ...............
Soybea:ns (oil piuivalent) 5
Soybean oil ...............
Other vegetable oils ......
Shortnin .... ........ ...
Airr .rine (fat contL nt) 6/
Soap (f:t contrnt) / .....
Tat'l, f;.t eni.v- ent ...


34 120 106 2/.34
: 65 L 82 809 226
3/: .30 61 2

S 70 391 19 .
.: 4 9 2 40
17 22 100 7
82 49 15 31
46 62 8 1S
77 72 59 59
.. 16 ____ 1_ 5__
..:_1 0 1 .61 1.;12 466


46 40 170
- 16--- 1
1 16 17


5



6-3
61


e---- -

1 9

--- __2

12
42


: 1,Or. 1,000 1,000 1,000 1,000 1,000 1,000
: bu. bu. bu. bu. bu. 'bu. bu_


Soybeans ]/ .................:


Lo 900 3 206 4,496-


2 1 .15


ly Prelim'"nary. I .Includes estin.i.ted butter content of Ar-my spread.
3] Includes f'Eh -*nd fish-livnr oils. 4/ Less than .500,000 pounds. 5/ Oil
enuivn!ant estii;,r'ted nt 9 pounds :ePr bushel. pj Frt content estimated at 80
,,crcent for :..nr-arinc;: 5 -'rcc-rt for srCap. 7/ Excluding soybeans resold for
crushing.

Price Index Advances

The index nu lb r of wholes.l.e richess of 27 m-.jor fats and oils advanced
1 point in. -I.rch :n.i :lr.nothcr po.nt. in A-oril to reach 158 pErccnt of the 1935-39
avr-raze, the highest in 24 yer.rL of record. These n'ivandes were due chiefly
to a rise of r.25 cent in. 1-rd prices in rid-:.arch, when new ceiling prices
bc.cire rffectivp. An increase in canOor-oil price cPilings in late February
contributed %' fraction of a point to the risf. The index number in April was
10 points above y;-,r ecrlirr, largely rs result of the 5-cent increase
last Tnovember '" cFiln,.- -urices for butter.
"!i~i<
















..-^l. ta. .. .


i 19M.
.1-In1


: bill.


e i .... I. eII ...I...II.. ....P...I.....II ;.....-.
Iw ..... -I-I....I *I...I.I* 1 1 'IIIa..... I
361... .................................. '.
dli, o l ................................:
,'_amL .edie ......................
sAe o,:I. a .l.... ...........................:



id"toc n el Oti. ........ .l ................. ;
f.I ..ible....................................
o nenle Oibl ................................


aepp oil animal .. ......................... :






11 ci erl oil ..................................
: r:. os ............ ......................
S' r ot ni .1 ............ .................
f talor a mal .............................
Sfate.


I eb-tiee l o. ...................................
mah peel nut' oilsb a (.. l) ....... .........

:: h i il ...... .......... ....... ...................








V-: tetablle t.l. .......................... ......:
0Fl M oil.........................................

,. Atn veaetnbl oil ... ...d.....................
f :; Vab oil a n to ........................ .....:
f:'. e tToal. ve. table ............................. 1
I ic .oal oil..................................:
$io2tanist- oil, edfle...........................
waa''!rv ofi ..oi footsa..............................:
A. PO-e1 dee oil. i ...............................I
i~ ~ ma1... ... ............................
NI a ein ll o ....................................:
rineil a .....................................:
pe oil. .i.....................................:
b'ive aol o .....................................:
3 fiqbree oil ........ ...........................I
1. taflover ail ............
l la a ........................ ...............: I
ix ta e allow......................................:
Z. er vegetable oils and fats....................
OILI`rs.ewntsbl oil .. shipments. to U.S. territories I
Total., .veetabl .............................: .


.h1k


3.* 3.7 / ?J.
3/ .2 .1 3/

1.0 .2 -- --

2.9 1.7 .6
7.T 32.0 17.8 .1
-- 3/ 3/ .---
3.0 1.. --- .5
- .7 I
1s., 39,9 18.6 .6

46.T 22.3 7 6.1
2.6 13.3 2.1 2.5
25 2.1 .1 .'
7T.7 37,.6 6., 9w0

.4 3.8 .3 .7
2.7 .,1 .6
.5 1.7 .5 2.5
62.8 3'.0 12.0 .4
14.2 j/ .
72.1 33.5 9.7
3.0 -
.1 79.0 2.7 25.9
16.0 21.6 2.9 1.5
e.5. 9.0 2.3 .1
20.2 -
5.5 .1 3/
28.5 --- --- -
01.2 66.1 30.6 6.2
16.1 --- 3/
28.9 3 -- --
10.3 17.7 1. ---
9.9 --- 3
7.0 3 --
.8 s5.5 19.5 .3
10.0
00.4 2.3
P.7 .) -3
--- 1.3 .1

12. i,).' 8' 2 41.0
9 L2 1na1 en0 F


r7 19 !0L1Jh il.It.

9.5 Ji41.4
27.7 563.8
3.8 .2
.3 3/
2.9 3/
.2 3/
1.5 6.2
14.5 6.8


296;0 618,7

3.7
2.7 16.9
2 9 .1'.4
5.6 140


1.0
33. '
.3
11.0

3.3




17.3
I-N,


2.5'
.1. -- -




2 13.2

107.5


1.3
.1
.2
11.1

31.9

.1




11.7
14'
.7







loO
-r 2
g1.7


./10.l
232,4


3/
1.5
2.1




.6
1.3
,22
-t.6


.6
3/

.1

3.1

3/

I
6.1
3/

---
.3

10.6
5.5

3/0
2.0
1Q
10. 6
2sr a


011b ..1
-. ; I


127.2
--- "'"

3/
1.0



5.0
---


2.2.
2.6
3. .
5 6 o


.8
.2
.2
.8

16.5


1/

1.7.






.2
.2

.i2
.n
l2,l -


'






-'I
..:i;






*. .:'.Ui
j' -I i ;
404",e


-Ttl vrp ;. ..... ,..... .....,. rr 2 4-4 Q lo 6 rah20 ,
Oil-bearing anterilas (in terms of oil)


bsu Ia rnels (63 percent) .....................:
istr been (4' percent) ........................:.
;pra (63 percent) ................................:
Itunseed (15.5 percent) ..........................
eaxeed (34 percent) ............................:
kmnir kernels (36 percent) 6..................:
i-nnt kernels (15 oereent) .....................
teute, shelled.(39 percent) .................
irlla seed J7 percent) ........................
inie seed (47 percent) ............ :
bemine (15 percent) ...........................
---------.


48.9
95.0
335.9

351.7
1.2
14.8

.5
---


46.3
137.0
149.1
3/
72.3


19.6

.3
-- n


5.6
. 3 .3
55.5

26.5
.1
17.51
9.5

--


14.2
39.2

11.7



1.0
---


.8
3/




5.0


Sl r n s( e.Ct. ..... .............. ---
' a.. ol -bearilne'matertele ..............: 85 ',3 468.1 151 o 111.3 5N.7 63 L_ __ 5 ,9
* 'ahufactured products (fat content)
r / ............................. 1.9 1 6 15 6
eteniur ...................................... 3 8.0 20. 3.4
bi ...........................................2.. 2. 1.6 31 .7 10.8 68.1 7.9 20.0 *-
.i'. otal. manufactured nroduoet ........ .6.....: 61, 1.6 .--- .1 15.,1 tl.o 2s.0
Grand total
t ........................ 2.016.7 901.6 259.6 165,6 506.3 1.029.7 311.7 223.9
pllsd fram M ntlyb Suimary of Foreign Commerce of the United States, records of the Bureau or the Census, and
Arrt. of the I S. Department of Agriculture. Totals computed from unrounded numbers.
l:t"e follling.ltema are not included above: Procurement by the Army for civillan relief and by the -. rican
ECrois; Janueatr-Decemaber 195 68 mllliori pounds of lard, 14 million pounds of edible oils, 6 mlll!cn pounds of
t let 3 am1h alUr4spoun.lof marearinp (fat content), end 8 million pounds of soap (fat content); Jrn'nary-March
i i 'ln 'pi~onde ,of 1Ard4 2 million pounds of shortening, 2 million pounds of m-r.rartle (fat content), and 'I
tlqpgl&s cof sdaip' (fat. content): Janunry-Harch' 146, S million pounds of lard (preliminary).
tiPt *tts',. tArrltories of butter, lard, and manufactured products: reexports of coconut, alta
L e dM anad cara and reexporte in 1945 and 196 of certain .uan ltles of whale.oll. lin-.
Y~ l o.'o rted. I inporte for contouptlon. Shipments include speclnl proL-rams of USDA it .
ei 3 th n. 50,000 poIndb. f Includes actual veltqt of butter oil and spreasd-(Army
itaBrately prio* to 1945 .'5/"iat reported separately. 6/ 1937-41, 35 percent. *I/ Imorte .- ,>li
&^s'l;bo.ucotanos athp Tirgin Islands.
K.ii. ~


4r


AbI. Mil Ilb.


i,


, ,


r


I


i







lTaaDe A.- racs ana o011s ractory proauciion irom o mesulc ann aiponea l. i
materials, January-March 1945 and 1946; and factory and warehouse :t
stocks at end of month, March 1945, February and March 1946 : N


S Production Stocks (crude basis) ."'
Items grouped by major use : Jan.-Mar. :Jan.-Nar.: Mar. 31,: eb. 28,: Mar. 31,
1946" : l14i a lqIi6 :_ ".
Mil. lb. Nil. lb. Mil. lb. Mil. lb. 11 .. i .

idI fate and oils
Butter ......................... 301.0 212.2 29.8 19. 15
Lard and rendered pork fat 3/ ....: 350.1 416.4 154.3 106.1 89.5
Oleo oil, edible animal stear- :
ine, and edible tallow ............ : q.1 37.2 21.6 9.8 q.6 :
Total edible animal fate .......: 710.2 665.8 205.7 15.4A 11 .1l
Corn oil / .......................: 61.7 41.0 22.0 15.5 18.4 -
Cottonseed oil V/ .................: 435.1 304.6 512.1 52.3 526.59 '
Olive oil, edible .................: 4&2 2.0 2.1 1.2 .9
Peanut oil 4/ .....................: 34.2 29.9 46.O 40.1 143,7
Sesame oil ........................: --- 1.9 .6 .14
Soybean oil V ....................: 351.8 413.3 150.4 251. A 267.7
Total edible vegetable oils ....: 887.0 7q0.8 734. 81. 8557.9
Seaa fats and Ul a 4 .
Tallow, inedible ..................; 253.0 271.2 159.6 I 3 67.3
Grease, excluding wool grease .....: 138.5 145.7 89.8 86;8 17.3
Palm oil 4 .......................: -- --- 65.6 2 .2.o
Fish oil ........................: 8.2 4.2 97.4 7. .i 0.0
Marine mammal oil ................. -- --- 39.6 17.6 5. '
Olive oil, inedible and foots .....: 55/ 2.14 .8 q
Total slow-lathering oils ......: qq7 4211 444 M. a O-, I
Babassu oil / ................... 5/ / 3.
Coconut oil ....................: 50.0 41.0 119.2 .16 12.
Palm-kernel oil 4/ ...............: 11. -- 6/ 17.1 t/ 16. 18.8 .
Total lauric-acid oils .........: 61.8 41.o 139.9 144.0 248,i
Drying oils
Castor oil. dehydrated 7/ .........: 19.3 10.6 11.0 8.3 9.0 ".
Linseed oil .......................: 123.5 142.h 227.1 152.5 138.7 '
Oiticica oil ..................... -- --- 5.6 5.5 50
Perilla oil ......................: --- -- .2 .1 .1 "
Tung oil ..........................: 3.6 3.9 19Q4 7.2 8.4
Total drying oils ..............: 146.2 156.q 263.3 174.2 161.2 ,
Other industrial
Beat's-foot oil ...................: 1.0 1.0 2.8 1.2 1.1
Wool grease .......................: 4.5 5.0 3.0 5.0 5.7
Cod oil and fish-liver oils .......: 1. 1.1 14.8 9.0 8.7
Castor oil, No. 1 and No. 3 g/ ....: 23.0 24.1 20.7 16.1 15.1
Bapeseed oil ...................... --- --- 13.2 13.8 10.5
Other vegetable oils .............. 9.8 16.5 44,8 1 .6
Total ..........................: 19.7 47.7 9q. 60.8 7 i
Grand total ............... 2.244.6 2.123.3 1.896.8 1.716.1 1.64-
Compiled from reports of the Bureau of the Census, except as noted. Data include stocks .
held by the Government in reported positions. Totals computed from unrounded nu =b .
i/ Creamery butter production and cold-storage stocks, U. S. Department-e.f AMria1wt : '
2/ Preliminary. 3/ Federally inspected production, USLA. 4 Stocks, ernde oil plus '
refined oil converted to crude basis by dividing by the following factors: Babaset, corn.
cottonseed, palm, and palm-kernel oils, 0.93; coconut, peanut, and soybean oils, 0. 4 1
5/ Includes in "Other vegetable oils." 6/ Crude only. V/ Converted to crude basis by:.:.
dividing by 0.88. f Estimated quantity used in manufacture of dehydrated cast oil .
excluded from production.









SAveragu : 1946
: t 1937-41 : 1942 : 1943 : 1944 1945 :fore".
Cast
Bil. Ib.'Bil. lb.'Bil.lb.'Bil.lb.:Bil.lb.:Bil.B
otion from domestic materials I
r Orreamery..............: 1.780 1764 1.674 1.489 1.369
: Farm .............. ...: .431 ,366 .341 .329 .337
Total (actual weight)-g2 2.130 r06- 1.01.5Z T T T
trtd and tendered park fat:
Inspected .............. 1224 1.721 2.080 2.367 1.311
Other .................. .740 .745 .977 .836 .821
:I Total ........ : 1.964 2.469 3.056 3.203 2.132 2. 50
Albe' tallrw, oloostuarine, o0o:. ---
fJAt:- aridoleo oil ........... .213 .277 .259 .198 .202 .200
L. dible tallow and greases .....: 1.167 1.742 1.650 1.943 1.751 1.800
S*arljs animal' oils ..............2: 243 .158 .175 .214 .180)
orn oil ........................: .155 .248 .237 .211 .205)
'. ttonseed-oil ..................: 1.472 1.386 113 1.12 1.273)
S.:fimut cil ....... ................ 087 .077 .153 1/ .108 I1/ .095) 3.500
Sgbenn il. ...................: .419 .762 1.234 1.246 1.388)
SLinseed oil2/ ..................: 277 .699 .715 .732 .454)
other .. .- .................. .035 .040 .034 .046)
Total;,"frdn -ddcimsti. mrtierials.: 8.250 9.983 10.848 10.839 9.432 9.2507


S.i .;Tan.ary.i (crude busis) 2.2 .2.3 2.0 2.2 2.2 1.7
S P of oil'and factory production
Srom.-impJrted mteril's i3/. 2.0 1.0 .9 1.0 .9
TaI supply., ....... ............... n "3o5 -c'- n i --
S T..M -.. T3. 14.0.
oiprts, reexports ,and shipments
S U. S. territories / ........ 4 .9 1.6 1.6 1.1
-kSM December 31 (crude basis)..: 2.3 2.0 2.2 2.2 1.7
ii is disappearance. 97 10.3 10.0 10.2 9.8
l K.t;'litary procurement, excl.'relifS_-- .5 .9 1.1 .11-
Eftimted civilian disappearance: 9.7 9.8 9.1 9.1 8.7
S ~.li disappear Founds Pounds P.unds Pounds Pounds
., ;-ivilian disappearance, per capital;
Food .......................: 49 48 46 45 42
Nonfood ...................: 25 26 24 Z5 25
Total..................... 74 74 70 70 67

b; iiled from reports of the Bureau cf the Census, Fish and W'ildlife Service,. and
St:: Department of Agriculture. uTtals cciputid fro;i unrcunded numbers.
obt I production mihus oil equivalent of imported Argentine peanuts.
ota.l production minus oil equivE.lent *i ir.t imports :.f fl-xseo,.
-fr 6rarts include shortening and soep in terns of.f,..t cont'u.t. Exports include
.uariarine, bhortenifg, a.nd soup in tcrmF f f: t a ntent, pr.ourenent by the Army
i ar.European relief &nd procurement by the Armnrican ked Cr.,ss. Exports do not
Oalude oil. equivalent of -oilseeds exported.






2sbe. 17. Oleonm.rgarine: Productin, wi' th4r.-vnale for ;:oroa
export, and rrtcrivls used in manufacture, United. Strtes, a


M-rch, 1945 -.nd 194b .

S 1945 1946 I Januwry-a ':
___ eb. ForC.: I:b. h aIre T
: 1,000 1,000 1,000 1,000 1,000 .,
: pounds pounae pounds pounds pmnd. ds


Production:. 3,980 1568 2,299' 3,001-
Oolorcd 47773 473 78 43 203 I4 667
Uncolored eJ2& f.q4IU .03' 46.677"
Tot-l .21 T -
With.drmrr..ls: .
T-x-prid for cnnsunpti-ri in ..
the United Strtes and
Storritories : 51,050 50,474 43,636 45,014
T.xr-fr.o9 for U. S.. Governnont: 1,040 4,645 92- .564
Tnx-frco for export 249 343 -275 1 230
Tot- 52, 39-%62_ o0053 t_
M".tcril Is .usc:l .
Olco oil : 788 1,165 264- 212-
Olcosto::rine : 217 142 195- 198-
L-rcd, reutral 694 g47- 248' 168.
Oloc, -stock : 85 127 28 34-
Tr llv -' _' 2' 2
T'c.tl, ni inal : 1.784 2.281 737 14


115,010




160,938 J15 ,


830

.
.2, 679 7ci
....547 5514
2 ,389 .. ..
*-- 356 '-V |
5.-2s9


Cott nocd il .
Snrbcnn -il
Po.r.ut .oil
Corn 'il
Li-.sce6. nil
Cott nnscoos. st arine
Cottonsoed flkes
Soybcnr. stoerine
Soyr-. -teo.rine flkeos
So -: f.l-.kos
Tot.'l, donmntic veget-ble


: 24,448 24,486 18,034 18,490 75,265 55.318
: 13,882 16,131 15,605 16,116 47,564 i.3''"i
1,064 642 1,992 1,839 31
8: 87 99s 629 .796 .62,4' 4 .
.... .


1 2
1 .2


12 .
'". ": T ti
'...-c.....,


:" 3_ -- -- 1_
:*40,25 2 63 3 6232_j 41 -g-674


Sun'flr ,'er oil : .-- 6 *- ;;'
Tot'-., foreign vegetable -- --- .
T t l fats -an. oils : 2 695 44 9g 5.-I.6.5~. 65-

Mil : 9,070 9, b60 7,695 7..99e. 29,067 .23.703.
Snft 1,609 1,705 1,414. 1,439 5,110 4325
Derivr.tivo If glycerin 97 99 6- 111 79 : lii
Lecithin 61 59 53 57 192 1.
Mo:-.Ecarino 35 36 32 37 l4O. .
Soda (bonxonte nf) 31 33 29 33 '102
Vit-nir concentrate 11 9 29,
Color 5 6 2 .3 45 ..
Estcnrine : 8 11 11 .
Miscll-nenus : 1 2 1 1
Tnt.l, oth.r zntcricls : 10.928 11.417 9.31 92._0. .00 2
Tt-tl, nll n-rterils : 52,997 55.561 4&j0 4754 169.64 7g.
Compiled fror. Intern-1 Rcvenuo rec rds nd Intnrnrl Revenue Bulletin.
1I Proliriin-ry. 2/ T.-tnl of unroi.Lded numbers. .


Itm


=
-z
,c.
- D-
I--
= 0

-i l
heh

I- 5
)=_