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_00073
Classification:
lcc - HD9490.U5 A33
ddc - 380.1/41385/0973
System ID:
AA00005305:00082

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text














FOS-43


LAR D: PRODUCTION, DISAPPEARANCE, AN D
EXPORTS, UNITED STATES, 1912-40


POUNDS
(MILLIONS)

2,400


2.000


1,600


1.200


800


400


0 -


D 4TA FOR 19J9 AIRE PRELIMINARY: 1940 PARTL Y ESTIMA TED
e INCLUDING SHIPMENTS TO UNITED STATES TERRITORIES


U.S. DEPARTMENT OF AGRICULTURE


NEG. 38595 BUREAU DF AGRICULTURAL ECONOMICS


LARD PRODUCTION HAS INCREASED TO ABOUT THE PRE-DROUGHT (1924-33) LEVEL.
BUIT BECAUSE OF INCREASED COMPETITION FROM VEGETABLE OILS AND WHALE OIL ABROAD,
WAR-INDUCED RESTRICTIONS OF PURCHASES BY THE UNITED KINaGou, AND THE BLOCKADE
OF MOST OF CONTINENTAL EUROPE, EXPORTS HAVE REMAINED SMALL. A RECORD QUANTITY
OF LAND WILL BE CONSUMED DOMESTICALLY THIS YEAR AT LOW PRICES. IF THE WAR IN
:.:. ;. EUROPE CONTINUES, A FURTHER DECLINE IN EXPORTS MAY TAKE PLACE IN 1941. BuT
LLARD PRODUCTION IN 1941 WILL BE SOMEWHAT SMALLER THAN IN THE CURRENT YEAR.


. THE T NATION


BUREAU OF AGRICULTURAL ECONOMICS
UNITED STATES DEPARTMENT OF AGRICULTURE


























































Compiled from Oil, Pain~t and Drug~i Reporter, The National Provisioner, Chi~cago Daily
Trade Bulletin, 1!inneapolia Daily Miarket Record, and reports of the Agricultural
Marketing Service anrd Bureau of Labor Sta~tistice. Prices quoted inotade excise
taxes and duties where applicable, 1/Preliminary. ffBeginnin;; Jlx y 1940 re-
ported in 1-pound cartons. 1/ }-ent processing tax added to grice! s originally
quoted, h Revi sed. 5/ No qpotasten~se;.


Table 1.- Price per pound of specified fate sad oils, and oil--bearing
materials, August 1938 and 1939, and June-August 19110

: Aug. :1940
It= : ~~~1'38 : 1939 : June: u : ;.


Pat s and oils: :
Butter, 92-score, Chiicago .....................:
01eomargarine, don. veg., Chicag~o ..........,...:
Compounds (anino.1 anld veg. cooking= fats),Chica~o
Lard, prine steam~, tierces, Chicago ...........:
Lard, refined, tubs, (cartons) Chlicag7o 2}.....:
01eo oil, erxtra, tierces, Ohricago .............:
01eostem~rine, bbls., N. Y. ....................:
Corn oil, crude, taik~s, f.o."o. mills ..........:
Dorn oil, refined, bbls., 3:. Y. ...............:
Costonseed oil, crad~e, tmnks,f.o.b.S.E. nills .:
cottonseed oil, p.s.y., ta k~ cars, N. Y. ......:
Peanut oil, crud~e, thanks, fo~b. lills ........:
Peanut oil, dom.I refined, bble., N. Y. ........:
Soybean oil, crud~e, tank cars,midnest~ent millss:
Soybean oil, refined, dnruns, N. Y. ............:


Cents Cents Cents


3.2
4,7
4.9
9t5



17*i,


14,0
.11.2
67.5

1.4
19.5
Igo.o
4.7
51.0


- 2-


25J.5
1.6.)
10.0
8.1
3.0
9.4
8.2
7.9
10.4

E.1
7.1

5.7
8.4


23.5
14.5


6.4
5.6
5.1
7.8
4.5
5.5
5.0

4. 2
6.7


26.3
15.0
3.2
5.5

7.0

G.L

5.1
;.o
5.7
r;.9
4.7


5.9
5.5
7.0

g.1
7.5
5.5
15.0
15.0
12.5

3.8
3.4

9.5

9.3
10.0

17.5
24.0
16.7
12.8
66.2

1.6
22.0
17Eo
4.8


15.0 1.
3.2 9iiE0
5.a 4rSi
6.2 .
7.0 719;
5.5 .
5-4 5.$i
G.4 ,
5. 4 4.8i
6i.0 5*,$
5-8 5.4
G.g g./
4.7 .
7.1 6,9

6.o 5.9
5-5 513
k/7.0 .
30.7 31,6
g.0 8r,l
7.4 6.8
5.4 5.2
15.o 15.0
15.0 16,.0
12.5 1.


'habassu oil, tanks, N-. T. .....................: 6.4
Coconut oil, crude,to.nk,1s,f.o.b. Pacific Coast 9i: 6.0
Coconut oil, edible, tanks, N. Y. .............: 8.2
Olive oil, edible, druns, N. Y. ....,...........: 25.1
Olive-oil foots, ?rineo, drums, NJ. Y. ..,........: 7.7
Palm oil, H~iler, crude, drcLns, N~. Y. 1/ .......: 6.7
Palm oil, Swan~tre, bulk, N. Y. 1/ ............: 60
~Rape oil, refined, bbls., N. Y. ................: flC.)
Sesrume oil, refined, drums, N. Y. .............: 10.5
Teaseed oil, crude, druns, N. Y. ..............: 8.0


5.8
5.6
7.6
25.1
6.8
6.6
5.6
k/10.9
3.2
10.'

4.o
4.1

3.1
}7.6

8.1
c.7

17.4
22.0

a".2
21.0

1.6
15
154.0
5.4
Sf


Tallow, inedible, Chicago ...................--:
Grease, A wJhite, CiicRo .................:
Ilenheaen oil, c~rde, tanks,f.o.b. Baltimore ...:
Sardine oil, crud~e, thanks, Pacific Coast ......:
Whale oil, refined,bleachzed winter,drums,NJ.Y. .:


5.1
5-3
4.0
li.0
8.6


3.r
3-8
4.7
5.0
9.5

8.7
.3 3

16.0
25.6
15.7
12.2
57.5


20.8
158.0
4.7
82.0


Linseed oil, revv, tank cars, H~inneapolis ......: 7.9
Linseed oil, raw, druras, carrots, Nr. Y. .......: 8.4
Perilla oil, drueas, N. Y. .....................: -fl0.7
Oiticica oil, dirums, N, Y. ....................: 11.2
'Pung oil, Giun~s, NJ. Y. ........................: 14.0
Castor oil, dehydrr.i.ed, i'rums, carlots, 1J. Y. ,: --
Castor oil, TNo. 3, bbls., N. Y. ...............: 9.2
Cod-liver oil,ned.U.S.P.bbls. :N.Y. (dcil.?er bbl.): 26.5
011-b earinZ naeteritl s:
Cypra, bags, f.o.b. Pacific Coast ......gb...: 1.9
Cottonseed, Dallas (dol. per ton) .............: 22.9
Plaxseed, No. 1, Ilinneapolis (per ba.) ........: 17).0
Peanuts, shelled,Runners No.1,f.o.b.S.E. mills*: 5.1
Soibeans,No. 2 Yellow, Chicago (ver hu.) ......: 86.0






FOS-43


- 3 -


THE L FAT~~S A 17 D 0 IL S S I "UA I: I 0 IT


Summa~ry.

Th~e record large production of fats anrd oils in the United States,

together with thle marked shlrinkage~ in export outlets for lard, has tiendled

to eariess ar~ices of fats and oils in recent months R.esite irrorovement in

domestic dterwrnd.. Prices for most fats in August wrere lower thecn in July.

And except for butter and marine oils, prices for domestic fo~ts, coconut oil,

and nalm oil wer~e neazr or below thre relatively low levels of August; 1933.

Supplies of deaestically ?roduced fats in the 1980-41 na~rketing season

are expected to be slightly less thanv thie large supplies of 1 .$~-40. Lard

and grease productionn probably will be substantialty s:ualler than a yea.r

earlier, and tiallown production al~Jso ney be reduced. Production of soybean

oil and peanut oil, on the other hand, is likely to be increased. Thle total

supply of cottonseed oil probably nill be little changed, Iw-ith in~crecased

production being about offset by reduced stocks.

Imports of fats, oils, and oil-bearing materials have been sneller

so far in 1960 than a year earlier, chiefly because of the prevailing

large su??lies and low prices for domestic fats. Nro rnateri 1 increase in

imports seems lik~elyl so long as prices for domestic fats continue low.

Domestic demand for food en1d soap fats, and for drying oils, is ex-

pected to be stronger in 1340-41 tharn in 1939-40, painly rts a result of in-

creased industrial and building activity, arising in part fror. the defense

program. But if the british blockzade of continental European macrk~ets is

continued, abnormally large supplies of adch foreign Item~s as coconut oil

..






shipment -to the United States. Under such circumstances, amy rise in prices

for domestic fats would be limited by increased imports. Nevertheless, some

improvenant in prices for lard, tallow, and greases sees to be indicated on

the basis of the prospective domestic supply and donand situation.

The farm ?rice of cottonseed was higher in August this year thap

last. Last fall, however, following the outbreak of war in Europe, prices

rose fairly sharply. Wi~th an increased domestic supply of cottonseed, rei

duced exoorts of cakre and meal, and increased supplies of peanut and sqyb~ijea

products, as well As linseed meal, no substantial gain in cottonseed prices

is now in prospect, despite the improvement expected in domestic demand

conditions.

The Uhited States flaxpscee crop for 1940 is reported to be of neape

record size. Plax~seed import req~uiranlents for the 1940-41 season probably

will be much below averAge, even though crushings may be increased. South

knmerican supplies of flaxseed are now seasonally mrall. If the wrar in

Europe continues, addh supplies may become burdensome next winter when the

new South American crop is hnxvested. The domestic farm price of f'lazaeed

was about the sane in AugZust this year as last, but was somewhat below the

average for the 1939-40 markreting season. Present indications are that the

aver-e:ze price for 1940-41 will be lower than that of a year earli~er. Put

with increased neurlket~ings, the total cash income from the 1940 crop may be

greater thEn that from the 1939 crop.

REVI~,pr as~can nE~VOrmacenISIJs

Prices of fats and'oils again decline

Prices of most fats and oils declined further in August from the
relatively low levels reached in J~uly. Lard, inedible tallow, and grease
showed the most pronounced reductions for the month. Butter prices advanced
seasonally in .kwgust.

Prices of domestic vegethble oils in August were equal to or slightly
higher than those of a year earlier. And prices of butter and marine oils





208-43


- 5


were considerably higher. But the average price of prime steam lard at
thicago, at 1:.9 cents per poundi, was thle lowest since April 1933; end prices
of grease (A white) and inedible tallow, at j.2 cents per pound, were the
lowest since Slardh 19j4.

Ea.st Indian paln oil and Philippine coco.:u~t oil were somewhat lower
priced in August this .year than Last. However, prices for other imported
oils w:ere su'astantially higher than a year earlier, chiefly because of diffi-
culties in obtaining supplies from E~urope and East Asia. Among the import ed
items whlidhl .mae pronounced price gains during the past yePar sere cod-liver,
ses3me, perilla, tung, castor, rape, olive, and teaseed oils. WlholessP.1e
prices of cod-liver oil in Augu~st were more than 20D percent higher than
they w~ere a yea.r earlier; increases for other items ranged roughly from 20
to 75 percent.

LarZe sunnlies, reduced exo~orts mainly
responsible for low prices of domestic fats

Production of fats and oils in the Dhited States for the calendar year
19110 is e:-:ected to be thre largest for e.1 years on record. Factory pro-
duction during the first E months of the year was reported0 to be 11 percentt
larger than in th~e corresponding period of 1939. Lard, inedible tallow sad
greases, and so3oesn oil accou.nted for most of the increase.

Totatl production of tallow, gracsses, and soybean oil v411 "oe of
record p~roor~tions this year. L~ard. production, however, whlile arudhi lreer
than thart in any of the past 6 ;-ears, probably will oe no larger t~han thie
avercen for th:e 10 pre-drou:gh~t years, 1321-33. The supply of lar0.? available
for domestic consumtion in 1980, nevrrTthelessa is byr for the~ largest on
record and is approxcimately 25 percent greater than aver c.e consumption for
the pre-drou~th period. R9euchLed e::ports of laLrd are mainly responsible for
this situation. (See cover chart.) The reduction in exports has been brought
about largely by increased cometition from hardS.aned veGetable oils and whale
oil in Eu~ropean markets in recent years, the present restri,-tiv~e nature of
British buying Ipolicy, and the blockade of most of continental Europe.

Domest~ic demand for food and soupr fats, reflectin,- the imp~rovred status
of industrial activity, is now stronger than it was a year ago. But the large
domestic production of fats, togeti-er with the loss of e-ports, ha.s served
to keep prices of domestic fats at e relc.tively low level. Another factor
offecting~ prices of domestic frats is the potentially large supplly of foreign
fats nd oils av-ailable for United States consumption. The Philippine Islands
and the "Het.:erl~ads Est Indies have been especially har-d hit by thle closing
of Europeen nark~ets to world trade. Large supplies of colpra. and coconut oil,
palm oil and palm kernels, which under normal conditions would be shlipned
to Euro~pe,.hanve been "baked up" in those countries, with thle result that
prices of such comnoldities are now at low levels. With sual-lies lazre aznd
prices low for domestic faLLts, United States imports of most fats and oils
have been son~enhat smaller so far in 1940 than in 1939. But any pronounced
gain in prices in the Uhited States prooa~bly would result in incr~eased im-
Sports, h~idh in turn would have thle effect of limiting the price rise.


ii:: :'b1 ;





Fos-k)


- 6-


Improved dan~cstic demayld, little
duangTe in total SuPTolies indicated

Further imporovement in domestic demand for fats is exp~ected to develop
during thle ne::t yeatr with continued expansion in industrial activity, re-
sult-ing in par~t from the Defense Progran. Total supplies of domesticallyl
produced fats ?robablyr will be slightly smaller in the 1940-41 marketing
season the~n in 1939-40.

Lard~~rnd grease production in 1940-4'1 ma~y be reduced as much as 10
percent from the 19jg-10 levels as a result of the smaller pic crop this
year. With fewer fat cattle indicated for market in 1941 than in 13'40,
tallow production also mayr be smaller. Factory stocks of cottonseed oil
nere indica ed to be about 100 million pounds less on August 1 this year
than la.st. But with a larger cotton crap, the production of cottonseed oil
in the cJrrent season may be increased by an amount about elual to the de-
crease in stocks.

P-.rtly offsetting the reductions in lard, tallow, and greases, there
probably wrill be an increase in output of soybean and peanut oils. The
mag~nitud~e of thle increases for these itens w7ill depend largely on the out-
turn of the domestic soybean and peanut crops this year, and on developments
in the exportY situation for soybonnls. At the present time, it ap~ears that;
the reaction in supplies of lard, grea.ses, and tallow will exceed the
ind~c~icaed increases for soyboeL1in an peanut oils.

Unc'er ordinary circumatances, improvement in domestic dermand, with
some reduction in total supplies, would bring about fairly substantial gains
in prices. .That so long as the Br-iti b blockade is continued, with abno2nal y.r
large supTrrlies of foreign fats remaining available for shipment to the Uniite#~.
States, prices of domestic fats are. not likely to rise greratly. Ifeveth'e-
less, some inprovenent in prices seems to be indicated for the next year,
particularly for lard, tallowr, anid Greases.

FTew la;d definitions established

Thle Secretary of At~riculture on August 14 signed an order establishing3~.
new definitions for ment food products which may be sold in interstate and
foreign co=.;erce as "lard" and urrendered pork fat.n The order will be awn-
forced under the I.;eat Inspection Act administered by the Bureau of Animal
Industry-, anda becomes effective November 1, 1940.

Thne new definitions provide that ulardn produced under IPederal inspeo*
tion be made from selected fresh, fatty tissues from healthy hogs with or
without lard s~te-rine or hardened lard. Edible pork fat not measuring ~up to
the definition of la1rd, sudh as he~A fa~t, scrqp fat, pressinGs and the like,
mayI be processed and sold as randere pork fat.
The chlief purpose of the new order is to increase consumer protection
under the 1:eat Inspection Act by establishing uniformity and fredanlese of
ingredients ?rocessed and sold as lard. It is estimated that not more than
15 percent of the feder-ally inspect~ed ;products now sold as lard will fail to
qualify as lard under the new definitions.





FOS-43


- ?-


THE ClOTTO;:SET SIT-J.ATION\

The sup~ply of cottonseed for the 1940-41 season is estir~mated at 5.7
million tons compared wvith j.l, million tonls a year1 ea;'lier and an average of
6.2 million =ons for the 1.0 :lea s 142.0-7. Alill. stocks of cott;OlOS~Ed'TI ugust
amnount~ed to only 39,00 t~ons, less than a t:hird c: the qu~an!tity on ;Iand a year
earlier. But production of cottonseedi, as ind~cicatd by condition~rs Sceptemlber 1
is expected t~o totzl about 5,67;,000I tonls, or I:re than :.00j,000 tons mocre than
in the~ 1099-!.40 season.

Despite the increased production of cotto;;seed, the suplpl;' of cotton-
seed oil probably w~ill be no L'reater- this season than~ last. :;ill stCckS of
oil (cruLde basis) on Augu~st I we~re soprocximately: 100 m~ill.ion porunds less than
a year earlier. And the~- increase in oil p~rodulction;, ?,Ssumljin that a':-o~ut the
sam~e proportion of th3 total seed Eupply will be crusned-l as in ther 193.9-l40
season, probably- will not; be in excess of thiis enount.

Table 2.- C'ottonastee andl cott~onteeod oil: Supply, net tradl3 -ad d~is.:.ppea~~ra~nce
United States, avcer~ago~ 126-37. annual 193~8-L0
U!Je-t exports are vindicated by a min~us sign)

:a Cat ton sEed : Octti~ns edd oil, c-rude basis
be.gin1- Paill : i ro- Corictic
:in :Pouc Tta ruh Stcs :Domesti~c:porlt s or:

August :Aug. 1:tn :spl:ig A.: tion :mi~ly mt s Ex :psranoD
: 1 ,000 1,000)C 1 ,000 1.,0 M~)O hil, Mil. liil lil. 81 1.
: tons tons tons tons l. lb. iib. 16. .
Average :
1929-37 : 103 6,136j 6, .39 r,,709 49 X46 1,964 35 1,483

1938 : 337 =, 310 5 ,6L7 L,&?71 559 1,.iso? 1 96 59 1, 352
1939 : 121 5.,200 5,381 L,148 671 1,325 1,999 7 1,422
1940 1/ : 39 /,715,710 21/4,400 570 /,0 /,0

Da-ta oni stoc.:s, cruLsnlings, and oil pr~odcItl::: COmIiled from: re~Porlts of the~ Bu-
reau of the~ Census; data on trade car.:pile~d fmrom records of the~ Burea-u cf For-
eign1 and Djomestic Lonmmrct; productions. of cottonsced as rep~ortd by' the Agri-
cultural Mlarkcetin:; Service. Donsstic di~sappe'aranc; cenputed'. frorm fatr! cn pro-
ductioin, stocks, crnd tridi.
L/Prolimn~ar~.
SIndicatedl Sep~tr:s~c.:*r 1.
2/Estina3ted, assum;in' ssmae proportion of" the supplly of cottonscled v~ill be
crushed as rn l1939-40.

Stckcs of cottonseed ca':a and seal, anil hulls wecre con:si 'erably s..aller
on AuguL~St 1 this year- thanu last. He~ncei, even LC" production olf these colmr:lcd-
'i ities should be Fncreased this season, total supplies plrobabl,- would be only
slightly larger than a y~ear earlier. Stocks of lin7ters on Au ,ust 1, toting
133,000 bales, were aLpproximat~el;- 3Si,000 bales s_..11er than stocks~ on August
1, 1939. Alnd the total supply of linter~s for th~e cu~ rent season mayS be
naller than in~ 1539-40.






The ave-rarge price receivedZ b:y farmers for Ycttonlseed in mid-August, at
$;21.16 per ton, wras approximately .35 pe~r ton~ hi~her than in mid-Augugfst 1939 and
wras about equal to the w~eighted ave:arage price for the 1939-L0 marketing season.
Prices rose fairly sharply in the fall and winter last year; following the oUt-
brrak: of wcar in Europe~ but hzve declined in recent mont~hs. The domestic demand,
for cottonsood products, esp-ecially for oil and linters, probably will continue
to be stronger in the current marketing year than it was a year ago. But for-
cig-n d71.anrd is likly~~j to remain weak: so longr as the blockade of most of the
European cont'in~ent is enforcGEl. MO Sharp rise in prices of cottonseed, such as
tool; place last fall, is likely to occur uncler such circumstan~ces.

The value: of cottonseed sold brl farmers, includ.ing- the quantity exchange
for mieal, amountu~d to 388,175,000 for the 1939 crop cou~pared with $92,836,000
for the 1938 crop, ac~co;-ding to estimates of the Agricultural Markting Servi~ce
Total sales in 19L -l41 probaoLy will be larger thlan in 1939-40. But present
indications are that prices in th;e niext fe! I:lon~ths, wrhen most of the current;
crcp will1 be sold, I.tay not average as h:I. as ti!ose in the fall and early wAinrL
of 1939.
TttE FLAXSE2ID SITUt.TIONE

Unrit~ed Stztes proc:.lctio:.. of flaxSoed for 1940c, estimated at 30.7 million:
bushels, is thei largest since 1',21 and Is ~lr.t:o than equivalent to total crush,..
inges of domestic and imported' seed inl the 193F9-40 ma~rke~tinfr year~. Some increase
in crushing~ is ...nticip-ted orC1 the current season, in viewv of the rising trend
in building~ acti~ityv and the con-sequen~t ir;:.rovement in demandrlC for linseed oil
for use in pair.Ls. Stocks of f~lexscad on July 1, totaling 3.9 million bushelsL
were neanrl:- 2 million bushe~ls larger the~ a year ea~rlicer.

The aojlacstic suppl;. productionn plus stocks) of fle.xseed in the curroub
season is clorpctedo t* tct-1 leore thanr 34 rdcllion buchcls, which probably will
leave little roor for itypor~ts. 1(!Ct ip!orts sf fluxsce-d am~ounted to 13.2 mid11.10
bushiels in the 1939-:0 si.canon co^'paCredC with liE.7 tiillion. bushels a year ea;rlie~
and 2n avorago of 16.4 m~ilionl bu~hols for thle prev;iojus 10 years.
Taolo 3.- F~laxtseed, and l-inrscee oil: PupplyI, net trade, and
disappeaarance, avora-ge 1928i-?7, annual 1938-110
(Net ex~po:ts ar-e Indicate,. by a m:inus sigs)
Flaxseed :. Linseed oil
Year : Est. : : : :: : Fac-:Matin-: : Do-
begPin- : tctal: Pro- : Islet :Total i Crush-:Shadcs: tory:ports:Totall~mestic
nling stocksk: duc- :im- *Jl r-ont u-dsp
July :July 1: tionr : otiupy ns 1: due-: ex- : ply : peac-.
:1/ :: : :: : tion:ports: : ance
: 1 ,000 1 000 1 000O 1 0010 1 C000 Hilil. l. i l. Mil. Mhil. ;
: bu. u. bu. u. bu. lb. lb. lb. lb. lb.
Average :
1928-37: 3,126 11,9/+3 16,360 31_,129 26,970 122 508 2 632 51C
1938 2,1c,9 8,152 18,744, 29,095 25,569 1146 502 1 647 516
1939 : 2,296 20,330 13,212 35,838'30,078 130 579 5 704 572
1940 2/: 3,911 2/30,602 133
Data on factory stocks, crusl~ines, and oil production compiled fromr reports of
the Bureau of the Census; trade, fr~om records of the Bureau of Foreign and Do~-
mestic Comm~erce; commercial and farm stoc!:s, and production of flaxseed fran ere
ports of the Agricultural Miark~eting Service. Domestic disappearance of oil
pted from data on production, stocks, and trade.
Total of factory, commercial, and; farra stocks. 2/ Preliminary.
Indicatedi September 1.


-8 -


'OS-L3





O


FOS-43


Althou~rb supplies of flaxseed in .1 1gentina and Uru~glay are now sejason-
ally small, the usual export mark~ets, aside f'ri.T the United States, are large-
ly cut off by the British blockade of much of Zlurope. if the war in E~urolpe is
continued, South American supplies of fla-sue~d are lilkelyr to become burdenscmo~
next winter wvhen the new crop is harvested. Nes-v;crop flaxsoed is no, bring
seeded in South America, but it is too nearly~ to hsa7ard an est-imate: of? the prob-
abli: outcome of the crop.

Factory production and: donelstic cons~ur:ption of linsec-d oil increased
fairly sharplyv in 1939-L0, chliefly in responsels to the ir.aprove~d acnandr for~
paints, but to soms extent also because of reduced. suppFlies of per1illa oil re-
sulting fr-om the short crop of peri~lla seed in Ibianc~huria in 193J9.

Further ismpro~vement in domestic demandi "or pai~nts is ini prosprct for the
current marketing year. B3ut the effect of this im.provea..cnt on prices of 'ooth
flaxseed and lins;eed oil is likely to bc outwaciged b\ dcyclopmecnts in Europe.
A continuation of the wa:*, with restricted do.-tlar.d for f~laxsced on the: Continent
probably would. mean thiat pricca v.3uld lunajin lot~.. Thi rreopecninp uf contirmental
European Larkets t, worl; tre-.do. on, tbo oLhe hani, Iprob-ablyr ouild bi accoupaFn5
by some stijmulation7 in prices.

Prices received be' farmers fcr flayrsced in the Unitedt States aviragecd
$1.36 per bushc1 in aidc-Aiugust this year. This pric? was about the came:. as in
August 1939 but was 103 conts flower thanr th~e average for the 1934-L0 I.ar::;ting
year and was colicidirablyr bu~low thr averagel for ths, previously~ 10 y.:ars. Pr, senl
indications are that the a veraptc price .for t~he 19'.-:-1 ma~sonr will be sojr:.vr.nht
lower than a yecar ea~rlier. But with larger malrket.ings, th:~ total cash incomeo
from the crop may~ b~e scuew~hat. greater this seaso-n than laIsL.

STATUE OF~ THE~ !'."ST" ~E;I:F.' OIPHEF ITH: ?CCARETC SIFFICI..; 'CI IN: FATS

The 'Iestern Heu~isphere is nearly se'lf-s:df~icicnt cwith regard to fats an:
oils as a vhole, *.vith a net irg,l.ort req~uir'em nt \'hich ordinarily an-ounts to 2
percent or less of total consunptioin. Howe~!ver, there are larye hemisphere sur-
pluses for some items, notably flaxssec', lard, tallow~, scybean-s, cottonseed,
and cottonseed oil; whJlile there are substantial deficits for other it~eI.s, in-
cluding coconut oil and copra, palm oil, tung~ oil, olive oil, peanrut oil,
perilla oil, and fish-liver oils.

Present hemiispherre surpl~uses are sold mostly Bt~ the European mar::et.
The imported itemls are obtained! largely~ from~ the Far East. Miost of the coconut
oil and copra is applieded by th~e Philippsine Islands aind the; East Indies. im-
ports of tung oil and pea-nu~t oil are furnished chiiflyl by 3China. Sh~iprient s of
perilla oil ori inate in? KuantungZ and Japan. Pa:le oil is obtained both in the
East Indies and ?ie~st Africa. OlivL oil and part of the fish-liver oils are im-
ported from Europe. Iceland and Japan alsoi are sources of supplly for f'ish-
liver oils.

Hemisphere self-uflficient in table and cook~ing fats
deficient in salad and edible. soap? oils

As inc'icated- in table: L, the 'llestrnl Hamisphere normally1S produces amrple
.-supplics of butter, lard, cottons-ed oil, soybean oil!, 0100 oil, and 01o~-stearkr




FOS -L3


- 10 -


for use as table and cojok~ing fats, but. is deficient, in production of corn oil,
olive oil, ~ssa.*ae oil, and tecseed oil, items which are used chiefly as salad
and cooking~ oils. The hemisphere also is deficient in production of edible song
oils? notably coconut oil, palm-k~ernel oil, and palm! oil.

In an emergency, thie deficiency in salad and cooking oils m~ni~ht be
rer.!,iesd by substitutinl Imuch of' the! cottonseed oil and soybean oil now used ia
ve~getable cooking fats for this purpose. This procedure w-ould involve some
change in taste;, but otherwise would ceuse no particular difficulty. The sur-
plus of 0100 oil and 01eostearine could be used in the manufacture of cooking
fats. And! part of the lard surplus could be used to replace the cottonseed and
soy;boan oils iivzrted fTrro the cookcin: fa~t to the salad-oil m.ark:et. The re-
mainde~r of the lerd surplus probably could be used for soap, talking the place
in large mneasur~e of palm oil now iLaported.

The only serious deficit probler~ in th~e edible fat field exists in the
"lauric-acic" oils coconut, palm-kcrnel, and babassul which aside from their
uscruLnoss for foocd are- almost essential in the r.:anufacturo of q~uickc-lathering,
hard soaps. Samuc copra is produced in Mex3ico, B~razl, and to a minor eit~ent in
other Lat-.n-Ameirican coluntrica~. But coprra and! coconut oil are imported by prao
ticarlly all Ancricaan countrie-s. Pa~m-lrcrnol oil also is imported. Babassu nut
anc. I:ernols, a Brazilianl product, have not as yet been produced in sufficient
volllmc t~o provide- a large ex.utrc-hcmispherer surplus.

The~ hemidspher deficit in the "lcuric-acid" oils amounts to about 800
raillion pound~rs annually~. Thiedeficit may be reduced in future years byr an in-
crease in ther harvest, of wlild baba~ss.. nutS in Branzil and- cohnune nuts in southem
Iloxice and Ccntrl~n Aerica, and by: an .L~Fpansion of existing palm. and coconut
p~lantations in nor~theiri Frazil and other tropical reg.io3ns. The fomonlr proceduir
Lnvolves consicarable difficulltiiE ac to: 1:bo for ha~rvst~ing, and r..uch capital
is nOed-:d to imp!rovc; thle pr~i.itive, t~r nsp:l~ortatonfacilities no:. cxristing, as
well as for thc esta~blish;~~nc~.i nt of p.rocessin. plants. Honolrver, the welalth
reprosc::tedl by tho~se: lild; nuts, aIt ?resent lary:1y un~taped, is very great. In
add~ition to the oil. theri jCrnalls y'ield a hi-ih-pro~tin cakc useful for livestodkt
;Leeding~. And the oute~r hu;ks ar, vralulb1l for the production of a high-grade
cha~rcon.l, with seve~r:-.1 impol'tant Finas~trial I,-era~ic:.s as byproducts.

Producution of 11flaxs; ed .:cre thanl sufficient for heist!.phere;
newds, out Iour.ut of fastir-dra ing oils i~s deficient

The :."ester;; Hcmisplhero product s neror fl.-xsi;d than it uses. On the
ot!.er hand, baaispJhere production of ta~ng oil and pe~rilll oil, .l-shich are
superior- to linue~d oil inl dr!ing ou-1lities. is almost negligible. Argentina;
and Uruguayv are th e surplu s `LaxsCoc~d--prod1c in nat ions. The United States and
Caaepoucfil agoqatte ffaeebut not enough for their
own? n-ods. Pr~odu~ction in the Ujnited~ States 'luctuatess *:idely from year to y
p?-rtly, Jin responrsi to channges in thu; flaxsced-whoot~ pjrice ratio.

Lin:sced oil may be su'oetitu-te to svme extent for perilla oil, but
to a very sligTht extecnt for tungE oil, which possesse~s almost unique water-
re:si StanZt chairnctorist ics. Tung. oil i_1 recent years has become Importanlt in





FOS-L3


- 11 -


the ~maufacture of hi ;h-u-ulity varn~ishes; andc for G.any ini'ustrial purlposes.
Some tun= oil is Produced along: the C-ulf CoaSt of the United States ;Jnd in
Brazil. But the bulk of the supply still comes from Chins.

Oiticica oil and dlehyd~rated crhator oil posso~Slns-we of thet p~ropert ies of
tung-oril, and-mayv be used to some extent as subSrtitutes. O'isicica olil i" GCo--
tained from the nuts of -the PrilC oit~icica tree foulnd in ncrtheasItern~ Brazil.
Mlost of the stands of thte citicica tree are nrov. breing-exp;loitec and it; is not
likely that produ;~:ction of oiticica oil c:ouldl be; e.panddc rmuc!: beycne' the pJreen~
level. Castor beans are prodCucud on a lar3ge scalo~ fron1. bo~h :'.11d andl cuiltivat-
cd planlts in Brazil. They ca- be grown also in the United Stater, but ,Iradu~ctic
costs are high..

Pcrilla seed.. pr~imarily a bManch;u-ian product, has boonc perm experimernnt-
ally ia the Unrited States. The chief obstacle to~ larg.~.--cailc pro'ductio~n in
thris country arises fro~m the difficulty in harve~sting byv mechanicijrl ,nean the
numerous seeds, which tend to scattcr on riponi:ng. Perilla oil is not a tung-
oil substituted,, but is s'lperior tj linacedi oil ,-.s a general dlrying Pil,) anLd is
particularly useful for blondrinr witl semi-dryins oils such as so bciln o~il anrd
cottonsood oil.

Homisphcre deficie.nt in med~icinal Zats

A large proportiojn of the supplyr of ;ish-livo-r oiled of Michr-vitas.lin
potency for rmdic inal u Es.C an; p~oultry fe:6 s i s Cobt ained f;ir... nen-han:ii sphere
sources. \*!001 grease, useful chliefl: as a bars for Sc.1vor;, cneT I-into~nt ts, as a
In~bricant, and as~ a Sourc; 0.' vit'min DI Plse is i, d:fic-.t itc1..

The profctioni~ of i'ish-liver oil.s by; Cr~neda and led ui-!:"Lndland u:ndoubtedly
could be e3xp-nd~d t so~me~ ;xicat. ProduIction in theL ;Jni'.)C StateS prob~~'1l;
could also be~ explor~ded Fish-liver cile prroduceld 6::::stic:i ll ~ are n.iunl: a by-
product of thec f-isa co..ning~ industry. RPc,:dorinl, planJts ;;nC bo3ate SpaifiicallyT
designed fr'l the pro~ductionl of such? oils pr~bcobaly r~;_ulc: bc nl-ded.-

Wocol Zrease is a bypr~odu~ct of th~e wrool-sc.ou!-ring inldust~r,. Dut~puS, ray be
increased only as the auanltity of wocol secured is inacreased;. Large quantities
of raw wool are roar sh~ipped i'c.:: Sout~h A:erica to Euro-e.

Suppy of lubr-icating~ cils ar. ple

Hemisphere supp~lie~s of lubricating~ oils (inclurdin- c=-th mnineral oils andr
fats) ar-e ar.ple- for motst needs. However, fairly large cla~r.tities of rezpe oil
are imported. Blolrn rape oil, liike castor oil, is his.hly viscous and is partic-
ularly w~ell su.ited for use in high-speed internal com.bustion :.c.:0trs. Capo oil
is resistant to the action of salt air anid water, and hencu is widely used in
niarine motors. Somec rapeseed is pro-duccil in Ar chtinra, bult plrouction:~3 to date
has been srmall.


ROBERT ;r. ':ALSH.











Commodity

Used mainly for table
and cooking fats -


:Ulnited States 100 .

:United States 55rk.
:Argentina 21, Cuba 7.,
:Brazil 6,' Urugnar~ 4
.Canada 2, Mexico 2,
:Chile 1, Venessela le
:Others 1.


*United States 100 ~. ;;


FOS-43


- 12 -


Table 4.- We~stern Hemisphere: Estimated net export and net import balances
for specified fats, oils, and oil-bearing materials


: Net : Net : Countries showing :Countries showing
:exortsimport~s: net ezgorts :. net impo~rto -


:1,00C
: b


1,000 :
lb. :


:Argentina 80k ,Canada:
--:17, Duba 2, Uruguay 1

:Brazil 634 Peru 26:
*Argentina 5, Para-
--:guay 4, Ecuador 1,:
:Nicaragua 1.

:Brazil, 80 6, United :
--:States 16, Mexico j,:
:Peru 1.

:Ulnited States 959~ .
--:Canada 3, Argentina :
:2.

:Alrgentina 89 United
--:states 11.:

: ~:Canada


Butter .............: 7,944


Cottonseed (oil *
equiv., 1554) .....: 26,441



Gottonseed oil .....: 38,217


::
Lard ...............:475,000


01eo stock and :
derivatives ......: 56,505


60 United


.


Peanut oil .........:


--128,072:


:States 39, Urgugmy 1,




:Duba 57%, Canada 28,
:Chile 15.


Soybeans (oil :
equiv., 140) .....: 86,689


Soybean oil ........: -

Total ....... ...690,796


--:United States 100Cj.




138,468:


Used mainly for salad :
and cooking oils :

Corn oil ...........:


-- 6,308:



--176,497:





-- 31,427:


Olive oil ..........:




Sesame seed (oil :
eauiv., 45#) i.....*


Continued





: Countries showing
: net imports


Commodity



Sesame oil .........


Teaseed oil ........

Total .....

Used mainly for soap
Slow lathering .

Fish oils .....

Palm oi ......


Whale and seal oil .

St~earine, animal 1/


Countries showing
.net exports


Palm kernels (oil:
equiv.. 45P) .....: 4,2

Palm-kernel oil ....: -


__ _I


FOS-k)


- 13 -


TPable 4.- Western Hemisphere: Estimated net export and net import balances
for specified fatal, oils, and oil-bearing materials
Continued


: et : et :
:exports:imports:
: 1,000 1,-000 :
: b. l b.


12,618:


990,


: --
:


:United States
:Canada 1.


: -- 15.751::

: -- 262,601:



: ~:Canada 89 United:
: 19,084 -- :States 8, Argentina 3.:

: -- 40g,304:


: 25,61S: :

: 10,031 :Argentina 949, Uruguay:


United Stats 100 .


United States 81 ,
Canada 15, Cuba 4.

United States 100 6.


Tallow If ..........: 81,752 -- :Arge~ntina 81c Uruguay:
: :9, Brazil 6, Canada 1.:

Total ..........:110,867 432,917:

Used mainly for soap
euick-lathering~ :
Babassu nuts (oil :- ::Bai :0~
equiv., 63%) .....: 3 8 Bai 0

: : :United States 87 ,
Coconut oil ........: --3 3,689: :Canada 10, Argentina
: ::1, Dlb,7 1, Others 1.

Coprfa (oil equiv., : United States 82),
634B) .............: 359,126: :Mrexico 15, Colombia 3.


--:Brazil lookb


:United Staltes 1004.


55 ,159:


Tosal ..........: 4.583 797.974:


Continued -






Table 4.- western H~emisphere:- Estimated net export and net-import -ba-danowr
for specified fats, oils, and oil-bearing materials
Continued

: et : et :Countries showing :Countries showli~
Comodty:exports: imports: net exports : net importoi,
: 1,000 1,000 :
Used mainly for dry-: lb. lb.:
ing ~purpo ses : :
Flaxseed toil ::Argentina 9BS Uruguay
equiv., 33 ) ...:830. 54 -- :4.


:Duba 24 g, Canada 22,
:Chile 11, Colombia ED,
*Mexico 9, Peru 7,
:Venezuela 7, Brazil 9,
:Ecuador 2, Panama a?.
:Argentina 1. Goeta
:Rica 1, Salvador 1,


Linseed oil ......: 11,286:




Oiticica oil .....: 1,576 -- :Brazil 100 6.

Perilla seed (oil::
eauiv., 37 ) ...: -- 597:

Perll ol ....: -- 66,411:

Tung oil .........: -- 134,307:

Total .......:832,030 212,601:


:United States 1000.

:United States 100 k.

:United StatesB 100 .,


Used mainly for:
medicinal purposes:


.United States 94),
C 4 A i


4


s ver o s ..: -- 57,79 : : anada rgent na
: : :Others 1.

Wool grease ......: -- 4,669: .:United States 100 .

Total .......: 62,46): :


Continued -












Commodity

Miscellaneous indu
trial oils -
Castor beans (oi
equiv., 42 g) .


: Coun~tries showing
: n~t imports


Eros-43


S15


Table 4.- Western Hemisphere: Estimated not export and not import balances
for specified fats, oils, and oil-bearing st~erialo
Continued


: Net : Fet :Countries showing
:exports : imports: not expolts __
:1,000 1,000 :
s- 1. lb.


l :
..:


:Brazil 98 Argeni-
--:tina. 2.


:CPnada 84,6, Cuba 10,
:Mexico 2, Argentina 1,
:Costa Rics 1, Ecua~dor
:1, Peru 1.


Castor oil .......:


1,877:


:United States 35),
--:Brazil 28, Canada 26:
:Uruguay 11.


2,376


Neat's-foot oil ..


Bapeseed (oil :
equiv.. 354) ...: -


:Un~ited States 9750,
:canada 3.


6,568:


;' Rape oil .........: -- ST.28 :Uie tae 0


4;,79! 42,273:


Total ..........:


Total, all :~67, b : :217



The term "Western Hiemisphere" applies here to Can,--da, Nierfounidlan~d, Urnited States,
and the 20 republics of Latinr America.

Estimates are based on trade data compiled from official sources and the Inter-
national Yearbook of Agricultural Statistics for the years 19 5-38, with the
following exceptions: Tallow, 1938 data; babassu nuts, 1g36-39 data; soy;beanis,
soybean oil, and oiticica oil, 19~39 ats; lard and cottonseed oil, estimates as
of 1940, data for earlier years not being considered representative. Data are
not complete for all comrmodities, since tr.?de figures for some countries are not
completely available. But the totals are believed to reflect the net hemisphere
trading position fairly accurately.


If Mostly inedible.




UNIVERSITY OF FLORIDA

POS-43 -. 16 -3 1262 089051~386

Table 5.- 01eomargarine: Productionr and materials ueed in mn
Cited Stat~es, Juily 1938 and 1939, May-JuAly 1940O



Item .
.1338 1939 I ty June.
nnn~~~~~ rn r M


859 93 0
246 310 23c6
111 gg 42)3
57 -91 7D
12 ---
--- 88 -
1,28 1,2 1,2
5.522 8, 68 7,392
5,625 .5.727 4, 463
186 -133 137
18 4S 10
--- --- 2
--- 1 1

11.351 14,yT 12,005
1.56 2.527 1,575 1
1,332 962 683


2,82 ,8 2,21 1
15,528 19,786 15,695 17


Compiled from Internal Revenue records and Internal Revenue Baletin.l


: cunds
Pro duct ion:
Colored ..:..................: 104
Uncolored ..,.......,......... 25,418
Total 2} ..............:,, 25,52)
Materials used:
01eo oil ................: .1,090
01eostear~ine .......: 315
Lard, neutral ..............: 97
01eo stockr .r................: 1566
Beef fat ...,...............: .--
01eostee.rine oil ...........: --
Total, animal ............ 1,668
Cottonseed oil .,............: 5,161
Soybean oil ................: 2,.979
Peanut oil .......,..........: 290
Corn oil .................: 2
00ttonseed st earine ........: ---
Soybee-n stearine ........,...: ---
Yegeta7ble stearine .........: -
Total, donestic vegetable.: 11, 52
Coconut oil ................: 6,331
Babasmu oil .............. 1,086
Palm-kernel oil ..,..........: 263
Palm oil ...................: ---
Total, foreign vegetable .: 7,650
Total, fats and oils .....: 0.0

Milk ........................: 4,787
Salt and other miscellaneous .: 1,14)


1,000
sounds

103
19 ,1GD
19.262


pounds


1,000
.poundsa

252'
19. 570 .
119.8 2


j,8;70
906


4,691
1,074


3,611
878-


Preliinanry.
Total of unrounded numbers.


rii;