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:
AA00005305:00084

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text













FOS-.59


HjtlS~ '


5Y


PERCENT


220



189,



1 4.0



100


1915 1920 1925 .1930 1935
BUlTTER, COTTONSEED OIL AND LINVSEED OIL. NBW YORK: LAND.TALLOW( INEDIBLE i.
*GREASE. OLEO OIL. AND TALLOW rEDIBLE r.CHICAGO


U. g. DEPARTMENT DF AGRICULTURE


NEG 35999 BUREAU OF AGRICULTURAL ECONOMICS


* PRICES.0F FATS AND OILS PROBABLY WILL AVERAGE HIGHER IN 1942 THAN
IN 1941s BUT ADVANCES FROM THE DECEMBER (194l) LEVEL ARE LIKELY TO BE
LIMITED BY CONTROL MEASURES. CEILtNGS ON WHOLESALE PRICES OF FATS AND
,OILS (EXCLkUDING BUTTER) 'ARE.NOW SET AT THE OCTOBER I LEVEL OR AT lIl
PERCENT OF THE NOVEMBER 26 LEVEL, WHICHEVER IS HIGHER, WITH THE SPECIAL
PROVISION THAT THE CEILINGS FOR SOYBEAN OIL AND LINSECD 01L WILL BE THE
OCTOBER PRICE PLUS 0.75 CENT PER POUND. PRESENT CEILING PRICES ARE
COISLDERABLY BELOW PRIC(8 DURING AND IMMEDIATELY FOLLOWINs W(onto WAR I.


THEIT UAT ION
BjUREAU OF AGRICULTURAL ECONOMICS


UNITED STATES DEPARTMENT OF AGRICULTURE

8R


'LTrhlil~





JaNUvaRY 19'-2


- 2-


Table 1.- price per pound of specified fats, oils, and glycerin,
December 1939 and 194r0, October-December 1941


: Dec. 191
Item : 1939 : 1940 : Oct. : Nov. : Dec.
:Cents Cents Cents Cents Cento

Butter, 92-score, Chicago ........................: 29.5 3.2 35.2 35-8 34.6
Butter, q2-score, New York .......................: 30. 2 348 35,6 36,2 35.o
01eomargarine, dom. veg., Chicago ................: 15,0 145 17.3 17.5 18.0
CompIounds (animal and veg. cooking fats), Chicago : 9.5 8.4 16.1 15.8 16.3
.Lard, prime steam, tierces, Chicago ..............: 6.2 9.8 9.8 10.0
Lard, refined, cartons, Chicago ..................: 7.1 6.2 12.0 11.6 12.5
01eo oil, extra, tierces, Chicago ................: 7.4 7.'1 11.5 11.6 11.6
01eostearine, bbl., N. Y. ........................: 7.0 6.2 10.2 10.3 10.8
Tallow, edible, Chicagp ..........................: 5.7 4.6 9.2 8.9 9.0


Corn oil, crude, tanks, f.o.b. mills .............:
Corn oil, refined, bbl., N. Y. ...................:
Cottonseed oil, crude, tanks, f.o.b. S.E. mille ..:
Cottonseed oil, p.e.y., tank cars, N. Y. .........:
Peanut oil, crude, tanks, f.o.b. mills ...........:
Peanut oil, dom. refined, bbl., N. Y. ............:
Soybean oil, crude, tank cars, midwestern mills ..:
Soybean oil, dom., crude, drums, N. Y. ...........:
Soybean oil, refined, drums, N. Y. ...............:

Babassu oil, tanks, f.o.b, mills, Pacific Coast ..:
Coconut oil, crude, tanks, f.o.b. Pacific Coast 1/:
Coconut oil, edible, drums, N. Y. ................:
Olive oil, edible, drums, N. Y, ..................:
Olive oil, inedible, drums, N. Y. ................:
Olive-oil foots, prime, drums, N. Y. .............:
Palm oil, Niger, crude, drums, N. Y. I/ ..........:
Palm oil, Sumatra, tanks, N, Y. If ...............:
Rape oil, refined, denatured, drums, N. Y. .......:
Rape oil, blown, drums, N. Y. ................,...:
Teaseed oil, crude, drum, N. Y. .................:


5.9
8.6
5.9
6.9
6.6
10.1
5.1
6.7
8.0


6.4
8,9
27.7

8.7
8.0


17.2
12.5


5.9
8.5



7.7
4.5
6.3
7.7


5.5
7.5
43.3
31.7
10.4
6.6
5.0
ly.)
17.5
17.5


12.2
15.4
12.2

12.1
15.9
10.4
12.0


9.5
9.6
13.8
72.3
54.4
17,2
11.6
10.8
15.4
17.4
28.0


11.2
15.0
11.4
12.4
11.9
15.8
9.5
11.8
13.0

9.6
9.8
2/14. 4
72.3
54.4
17.2
12.0
11.0
14.8
17.2
28.0


11:33
14.q
12.0
13.1
12.1
15-9
10.1
12.3
13.7



2/15.2
74.8
54.8
18.2
12.4
11.8
15.2
17.6
29.2


Tallow, inedible, Chicago ........................: 5.3 4.2 8.6 8.7 g.i
Grease, A white, Chicago .............: 54 4.1 ss 8.6 g.8
Menhaden oil, crude, tanks, f.o.b. Baltimore .....: .3 0 81 7. 1
Sardine oil, crude, tanker. Pacific Coast .........: 4. 2 5.3 8.2 7-9 s.o
Whale oil, refined, bleached winter, drums, N, Y. : 95 95 1. 11 1.
Linseed oil, raw, tank cars, Minneapolis ......... : 9.9 7.9 10.0 9.41 10.0
Linseed oil, raw, drums, carlots, N. Y. ..........: 10.3 8.8 10.9 10,2 10.8
Perilla oil, drums, N. Y. ........................: 15.4 18.0 22.8 22.8 22.8
Oiticica oil, drums, N. Y. ...............,,......: 20.4 19.0 22.2 22.0 22.8
Tung oil, drums, N. Y. ...........................: 26.5 26.9 36.0 35.8 36.4
Castor oil, No. 3, nbl., N. Y. ...............gh..: 12.0 9.8 122 12.4 12.5
Castor oil, dehydrated, drum, carlots, N. Y. ....: 16.0 13.1 16.9 16.9 16.96
Cod-liver oil, med. U.S.P. bbl.,N.Y.(dol.per bbl.3: 3. 72.5 87-5 875 7.5
Cod oil, Newfoundland, drums, N, Y. .......s 96 8.0 10.5 10.5 1.
Glycerin, soaplye, 80 percent basis, tanks, N. Y. : 8.0 7.2 16.3 11.5 11.5
Compiled from Oil, Paint and Drug Reporter, The National Provisioner, and reports
of the Agricultural Marketing Service and Bureau of Labor Statistics. Prices quoted
inlude excise taxes and duties where applicable.
Three-cent processing tax added to price as originally quoted.
Leas than earlots.








FOS-59


THE FAT 5 AND 0ILS S SUBITU ? I


Summlary

Revised acreage goals for 1942 crops, announced January 16, provide

for an expansion of more than a billion pounds in the production of vegetable

oils in 1942-k): compared with 1941-42. Adc'itional measures are contemplated

to bring about increased recovery of lard, tallow, and greases in pack~ing

plants and other establishments.

The revised goals for oil crops, with 1941 acreage figures in

parentheses, are as follows: Peanuts picked and threshed, 5 million acres

(1,964,000): soybeans harvested for beans, 9 million acres (5,85:,000);

and flaxseed seeded, 4.5 million acres (3,367,ooo). cotton ac~reage also

will be increased in 1942, adding possibly 10 percent to the production of

cottonseed oil. Price-supporting measures for pean~uts for oil, soybeans,

and flaxrseed have been announced.

Domestic demand for fats and oils in 1342-43 will be the strongest

in more than 20 years, and substantial purchases of lard for lend.-lease

shipment are in prospect. Without increased domestic production, the

United States would fazce a possible deficiency equivalent to 8 to 10 per-

cent of total requirements for fnts as a result of curtailed imports of

oilseeds and oils fromn t:.e P:.cific area. This deficiency probably could

be covered by withdrn.-l from stocks on hand, but a material increase in

domestic production will be needed if expected roquirements are to be fully

met in 1942-43 and if stocks are to be ncaintained at a safe level. Prices

of fats, oils anid oilseeds probably will avcr-ge tigher in 1982 than in

194-1, although advanices from present levels are likely to be limited by

control measures.








JA:TUAY 1942


- 4-.


The principal changes in the outlook for fats and oils since last

fall rise from: (1) The outbreak of war in the Pacific, and (2) action

taken by the Office of Price Administration in establishing ceilings for

wholesale prices of fats and oils (except butter). More than 60 percent

of total imports of oilseeds, fats, and oils in recent months has originated

in the Pa~cific area, which normally supplies all of our imports of eqpra,

coconut oil, tung oil, and perilla oil, and most of our imports of palm

oil,

--January 20, 1942

RZEVIEW~ OF RECENT DEVELOPMEINT~S

BACKLGROUiND.- With large world supplies available, prices
of fuLts and oils were at a low level in 1939. Prices ad-
venced in the fall of that year, but most of the gains were
lost in the spring of 1940. Reduced shipping space and in-
creased shipping costs e~rly in 1941 restricted the volume
of imports of. oilseeds anJd oils. This, together with marrked
imrprovement in domestic demand and Government purchases of
Irrd for export, resulted in sharp advances in domestic prices
olf fr.ts and oils during the first' half of 1q41. Prices tended
to level off during the second half of the year, largely as a
result of proposed and actua~l price control measures,

Price Ceiling Schedule Amended

The original schedule of December 13 establishing ceilings on whole-
sale prices of fats and oils was revised upward in an amendment issued by
the Office of Price Administration on January 2. The original order on prices
set the ceilings at levels prevailing November 26. Ceilings are now set at
the October 1 level or at 111 percent of the November 26 level, whichever is
higher, with the special provision that the ceilings for sayrbean oil and
linseed oil will be the October 1 price plus 0.75 cent per pound.

Except for butter, "essentinl" oils, and miner al ils, the revised
price schedule covers all raw, crude, anld refined fats and oils and their byr
products and derivatives, as well as greases. Specifically excluded are
sales of fats and oils (except olive oil) through wrholesaile and retail
channels: s,-les directly to the baking, restaurant, hotel and other looking
trades; and sales of 10.rd destined for kgpa consumption without further
processing. "Byproducts,n as used in the schedule, means substances obtained
in the course of processing or treating the' fats and oils.

The ceiling prices for cottonseed oil futures contracts traded on
the New York Produce Exchange and the New Orleans Cotton Exchange, an~d for








FOrS-59


- 5 -


lard futures trades on the Chlicago.Board of Trade, are the closing bid
prices on October 1,

With respect to sales of actual fats and oils, the prices charged on
October 1, 1941, are taken as the maximums. Soybean oil and linseed oil,
which were selling at levels below their normal price relationship to cotton-
seed oil on October 1, are given the benefit of a three-ouarter cent per--
pound mark-up over their October 1 prices. To make similar provision for
other fpts and oils that likewise were selling below their normal relatio~n-
ship on October 1, the schedule states that in no case need the maximum
price be less than 111 percent of the November 26 price,

The schedule provides that any changes since October 1, 1941, in
ocean freight, war risk insurance, anLd marine insurance rates shall be added
to or deducted from thle established maximum prices.

Approximate price ceilings for leading fats and oils under the
original and amended schedules are shown in table 2. The new price ceilings
are at least 11 percent higher than the origin,-l price ceilings, and in
most cases they are slightly higher than prices prevailing on Decemoer 12,
19L1, the day before the original price order was Pnnounced.

If prices of high-protein meals cand cottonseed hulls and linters are
mainta-ined near e::rly Jan.:uary levels, maximum prices received by farmers
for domestic cilseeds, with the present ceilings on oil prices, would be
approximately as forllow~s:

"Uottonseed $51 per ten
Peanuts for oil $Sj per ton
Soybeans $57 per ton, or
$1.71 per bushel
Flaxseed $73 per ton, or
$2.04 per buishel

Possible advances in prices of high protein m?nls a-nd othnr byrproduct s
from corly Januarlly levels would tend to raise the mnaxim-zm prices for oilseeds.
The estimrte-d prices shownri were obtained byr computing tare mill values of
oilseed products per ton cf seed on the basis of market prices for the mill
products as ind~icratd r'i_ e, rnd thenr dedulcting; a normal marketing and pro-
cessing margin. "ho~ Ir r~-lis u-2-d rr the averages for the croip-merketing
years 1936-.80. In laur.:.;.5 -numbers the -arfins are as followrs: Cottonseed,
\$16 per ton; peanuts for :il, $9 per ton; sa-ybeens, $13.50 per ton; and
flaxrseed, $27.50 p-:r tc:.. 'th- wide. variation in. these margins proba-bly is
due in part to the wry ;in which "7ill valul3s" of products are computed, using
market-price rather thr~n -etul~ mill-price drta. The comprutatio~ns of nilll
values" are shown~ in table j. Variation in the mrergins arlso arises from
differences in the basis of fuzrn rice quota.tion, In the case of peanuts
for oil, prices are aucted on a delivery point basis, whereas for other oil-
seeds prices are quxoted at 10007.1 markets.

Prices received by farmers for oilseeds in mid-December were below
the estimated maximum levels, except for pec~nuts for oil, prices for which
were about equal to the ezticsated ceiling under the revised price schedule,







- 6-


JA1TUAR~Y 1942


Average prices for the other oilseeds in mid December were as follows
Cottonseed, $44.65 per ton: soybeans, $1.47 per bushel; and flaxseed, $1.78
per bushel.

The estimated maximum price for cottonseed is 57 percent above the
mid-December parity price ($32.47 per ton), On the other hand, the esti-
mated maximum price for flaxseed is 16 percent below the mid-December parity
($2.43 per bushel). There are no regularly computed parity prices for soya
beans or peanuts for oil, but "comparable prices" for these commodities,
recently announced, are lower than the estimated maximum prices.

Manufacturers' Purchases Limited


General Preference Order M-71, issued by the Priorities Division of
the Office of Production Management on December 29, prohibits the delivery
of fats and oils to manufacturers or processors in excess of a 90-day operating
supply. Operating supply is defined in terms of the manufacturer's rate of
operations during the 30 days immediately preceding issuance of the order, the
rate during the corresponding month of 1940, or the average of the monthly
rate of operations during 1941, whichever is highest. The monthly con-
sumrption selected is multiplied by ] to give the 90-day operating supply.
The order is a temporary one and will expire at the close of business on
January 31.

Prone of the order is to conserve the supply and direct the dis-
tribution (i.e. prevent excessive stock building) of fats and oils, imports
of which have been affected by war in the Pacific. Essential oils, mineral
oils, and butter are exempted from the order. Also exempted are sales of
fats and oil products in finished form, sales of refined edible fats and
oils (except olive oil) through wholesale ,and retail channels and to the
baking, restaurant, hotel, and other cooking trades, and sales of lard
destined for human consumption without further processing. Deliveries of
imported fats and oils to importers are not affected by the order, and
provision is made to allow anall ma~nufacturers to purchase and necept de-
livery of "the minimum comm~ercial quantities" of fats and oils.

Use of Tung Oil Restricted

General Preference Order M-57, issued by the Priorities Division of
the Office of Production ]Management on January 8, provides that no dealer
shall sell or deliver and no person shall buy or accept delivery of tung
oil, and no person shall use or process tung oil, except upon the following
categories of orders:

(1) Defense orders having preference ratings of A-2 or better.
2)Orders placed by Defense Supplies Corporation.
(3) Orders for the manufacture of outside can coatings where tung
oil is essential to withstand normal foob processing.
(4) Orders for uses to comply with underwriters, health, sanitary
or safety regulations or laws issued by governmental authority, provided
such regulations or laws specifically require the use of tung oil or a
product made from tung oil.






FOS-50


S7 -


The order is a temporary one and will expire on February 15.

Production of tung oil in the United States amounts to about 5 million
pounds annually. The bulk of the supply normally comes from China. Imports
of tung eil in recent years have varied from 175 million pounds (1937) to
78 million pounds (1939). Approximately 26 million pounds of tung oil were
imported during the first 9 months of 1941.

Price Movements Affected }7
Control Measures

Except for butter, prices of fats and oils advanced early in December,
with the rise being especially marked following the Japanese attack on Pearl
Harbor on December 7. The imposition of price ceilings on December 13 brought
the advance to a halt, Fow sales of vegetable oils were made during the
second half of December, and price quotations for animal fats and oils were
largely nominal at ceiling levels.

Reflecting the advances in early December, the price index numbers for
most groups of fats and oils averaged higher in December than a month earlier.
But with a decline in the price of butter, the index number for all fats and
oils (27 items) remained unchanged in December at 93 percent of the 1924-29
average. At this level, prices were !j percent higher than a year earlier.

The most pronounced price rises in December occurred in Philippine
coconut oil, East Indian palm oil, and linseed oil. The major influence in
the -case of linseed oil was the increase in the official selling price for
flaxrseed in Argentina. Whereas this selling price orior to mid-November was
about 80 cents per bushel (American currency), f.o.b. Buenos Aires, it is
now about $1.09 per bushel, f.o.b. Buenos Aires. The official flaxseed buy-
ing price of the Argentine Grain Board has remained unchanged at a fraction
'under 70 cents per bushel, on the basis of current exchange rates.

Following the revision of price ceilings for fats 3nd oils on
January 2, trade was resumed, writh most transactions being conducted below
the new ceiling levels. Prices in early January were not greatly different
from prices on December 12, the day before the original ceiling schedule
was announced (see table 2).

Prices~ in 1941 Highest ~in, Several Years

Prices of fats ar~d oils in 1941 were the highest in several years
(table 4). For many items, prices were the highest since the late 1920's,
while for others prices were the highest since 1937, when lard, tallow, and
greases were in short supply as a result of the severe droughts of 1934 and
1936. Unusually high trices prevailed for olive oil, tung oil, perilla oil,
and cod-liver oil in 1941, mainly because of the great, dif'ficulty expo~ericed
in obtaining supplies of these oils from forelezn sources.

Prices of fats and oils rose sharply during the first half of 1941.
and advanced somewhat further during the second half of the year. The index
number for prices of all fats and oils advanced from 67 in January to 9; in






JANUA~lRY 1942


-8 -


December, a gain of 39 percent. But butter has an important eight in this
index, and butter prices rose only 14 percent during the year. Lard prices
showed a gain of 90 percent; food fats and oils other than butter and lard
were no 92 percent; soap fate and oils were up 83 percent; drying oils were
up 18 percent (the price of linseed oil advanced only moderately because of
the stabilizing influence of the large flaxseed surplus in Argentina); and
miscellaneous oils were up 26 percent. With items grouped according to
origin, index numbers of prices showed the following net gains from January
to December: Animal fats, 27 percent; marine animal oils, 33 percent: vege-
table oils, domestic, 77 percent: and vegetable oils, foreign. 57 percent.
Foreign vegetable oils did not advance relatively as much as domestic vege-
table oils, but prices for many foreign items were at high levels at the
beginning of the year as a result of sharp advances in 1939 and 1940.

OUTLOOK MODIFIED BY WAR IN THE PACIFIC

The outbreak of war in the Pacific and action taken by the Office of .
Price Administration in establishing ceilings for wholesale prices of fats
and oils are the principal factors causing changes since last fall in the
outlook for fats, oils, and oilseeds in 1942-43.

Imports of oilseeds and oils from the Philippines, the Netherlands
East Indies, British MRalYa, China, and Japan normally account for more than
50 percent of total imports. These imports, together with those from Europe
and North Africa, which were out off earlier in the war, usually represent
more than two thirds of the total.

In recent months, more than 60 percent of total imports of oilseeds,
fats, and oils has originated in the Pacific area. The loss of such imports
would result in a deficiency of about 10 percent in the domestic supply of
fats and oils unless imports from other areas or domestic production can be
increased. Some increase in imports of babassu kernels, cottonseed oil,
tallow, and sunflower oil from South Amnerica is likely if shipping space can
be made available for this purpose. But even if such imports are increased,
the United States .would still be faced with a possible deficiency of 1 to 1.5
billion pounds in the supply of fPats and oils for domestic consumption and
export in 1942-43.

1)k2 Production Coals Revised Upward

The production goals for oil crops announced last September called
for 3-5 million acres of peanuts to be picked and threshed and 7 million
acres of soybeans to be harvested for beans in 1942. For flaxseed, the orig-
inal acreage goal was placed at the number of acres seeded in 1941. Because
of the marked change in the foreign trade situation in fats and oils result-
ing from war in the Pacific, the goals have now been revised upward with the
object of providing at least a billion pounds more domestic vegetable oils
in 1942-43 than in 1941-42.

If the new goals are attained, production of peanut oil will be about
600 million pounds greater in the 1942 marketing year than in the current
season, output of soybean oil will be increased 3001-400 million pounds, and
production of linseed oil from domestic flaxseed will be stepped up nearly
100 million pounds. With the cotton eoal now placed e.t 25 million acres, a
further increase of 100 million pounds or more may be expected in the output
of cottonseed oil. Additional measures are contemplated to bring about





70s-59


- 9-


increased recovery of lard, tallow, and greases in packing plants and other
establishments. The revised goals for oil crop, which are to be regarded as
minima, are shown in the followingtable.

011 orops: Revised production goal for 1942, with
comparative data

: b create : : Production
: Aver-: : : Aver- .
Commoity :age : : 1942 :Unit: age 194
: 96:1941 : ol: : 96 14 oal
: 40 : : oa: : 190 : : If
: 1,000 1,000 1,000: :Million Million Million
: acres acres acre: : units units unite

Pennute picked and threshed :1.743 1,964 2/5,000: Lb.: 1.-342 1.558 3.750
Soybeans harvested for beans:3. 5.85_5 9 ,000: Bu.: 61 107 153
Flaxseed seeded ........B ,367 k,500: u : 14 31 3

If Acreage goal multiplied by assumed yields of 750 pounds of pean~uts an
17 bushels of soybeean per harvested acre, and 8 bushels of flaxseed per
seeded acre.
2/1,610,000 acres for nuts, and j,390,000 acre for oil.

To encourage this production, price and loan supports will be employed.
Provision is made for a loan on flrJxseed averaging at least $2.10 per bushel,
farm basis, with location and grade differentials. Purchases of 1942 orop
soybeans will be made at $1.60 per bushel, farm basis, for designated vari-
eties of United States No. 2 Yellow, with location and grade differentials.
Government purchases also will be made of peanuts for oil at $82.00 per ton
for United States No. 1 White Spanish Type, $78.00 per ton for No. 1 Runners,
and $7Q.00 per ten for Class A Virginias, delivered at the approved local
receiving agency with location and grade differentials.

Demand and Prices to Continue Strong
Prices of fate, oils, and oilseeds in 1942-43 will be affected by the
strongest demand in many years. The all-out armament program probably will
result in full employment and bring an increased flow of income to many con-
samers. Moreover, the curtailment in production of durable consumer goods
will make additional consumer funds available for the purchase of necessities,
and will add appreciably to the demand for fats and oils. Increased taxes and
defense savings will be an offsetting factor, but the curtailment of buying
power from this source probably will not be so great as the additions to buy-
ing power expected.
Without control measures, prices' of most fats and oils probably ~would
make notable advances in 1942. With price ceilings in effect, the advances
probably will be very limited in extent, as present prices are not far from
the ceiling levels. In the case of the domestic fate and oils, existing price
ceilings are above the level of prices during most of the 1920's (except for
linseed oil and lard).
With prices of fate.and oila near ceiling levels, and with comparam
tively high prices in prospect for high protein meals, prices of domestic
oilseeds probably will average at least as high in 1942 as in 1941. Price
supporting measures, announced in connection with the production goals for
peanuts for oil, soybeans, and flaxseed, will prevent any marked decline in
prices for those crops at least through June 1943.






JAeNUARY 1342


- 10 -


Table 2.- Maximum prices per pound. of specified fats and oils, October 1 and
November 26, 1SI41, approximate price ceilings under Amendment :
rro, 1 to D.P.A. Price Schedula IUo. 53, and prices prevailing
December 12, 1941 an~d Janulary 9, 1942.

: :Approxi- :
SMaximum : Maximum Averag~e Average
Price price ae .price price
Item :O.1, ov2,: price : Dec. 12,: Jan. 9,
1941 1941 :ci- :1941 1942 i!
Vegetable oils: Cents Cents Cents Certs Cents :
Cottonseed oil, crude, tanks:
S. E. mills ...................:12.62 11.25 12.62 12.50 12.62
Cottonseed oil, bleachable,:
tanks, rI. Y. ..................,:14.35 12.75 1/14.35 13.75 13.70
Peanut oil, crude, tanks,
S. E. mills ................... :13.00 11.62(25tJO 13.00 13.25 13.00
Soybean oil, Decatur basis,
tanks, Chicago ................:10.78 9.88 2/11.53 11.50 11.25(sth)
Linseed oil, tanks (zone 3):
N. Y. .........................r10,60 9.30 2/11.35 10.50 10.35
Linseed oil, crude, tanks,:
Minneaporlis ...................:10. 20( 3rd) 9. j0(28thj{10. 95 9. 70 10.40
Corn oil, crude, nearby,
tanks, H. Y. ...................:12.75 11.oo 12.75 12.00 12.50
Baba~ssu oil, mills, tanks,:
Pacific Coast .................: 9.62 9.62106 ---
Cocenut oil, Pacific Coast .....: 6.62 6.75 7.49 10.oo--
Palm oil, crude::
Niger, drums, N. Y. ,..........,: 8.50 9.oo 9.99 9.oo(11th) 9.02
Sumatra, nearby, tanks, Nr. Y. .: 7.75 7.68 8.52 7 ,75 (6 th) ---
Castor oil, crude::
No. 1, tanks, N. Y. ...........:11.75 11.75 13.ok 11-75 11.75
Ho. 3, tanks, N. Y. ...........:11.50 11.50 12.76 11.50 11.50
Perilla oil, tanks, N. Y. ......:22.00 22.25 24.70 23-50 21.50
Rung oil drums, N. Y. ..........:35.75 36.50 4o.52 36.62 -
Animal fats:
Tallow, edible,domestic, N. Y. : 9.j8 9.06 10.06 9.82 9.56
Tallow, extra loose, N. Y. .....: 9.00 8.75 9.71 9.50 9.25
Tallow, special, B. Y. .........: 8.88 8.62 9.57 9-38 9.12
Lard, prime steam,tierces,
Chicago .......................:10.80 9.85 3/10.93 10.65 10.62
Marine animal oils, crude,
Menhaden B~n, Saltimore, new crop,:
if made (per gallon) ..........:60.00(3rd) 60.00 66.60 60.00 60.00
Sardine, Pacific Coast, new
crop, if made (per gallon) ...,:65.oo 60.oo 66.60 60.oo 6o.co

Compiled fro Be Yor Journal o Commerce an Oil, Paint and Drug Reporter, arcapt
for soybean oil, Decatur basis, and lard, from Daily Trade Bulletin (Chicago).
ffClosing bid future prices on October 1 were:. Januaryr and F~ebruary, 13.92;
March and April, 13.95; May, 13.95. 2} Three-fourths of a cent added to Uotober 1
price as provided in amended schedule. ]/Closing bid. future prices on October 1
were: January, 11.27-1/2; March, 12.55; May, 12.82-1/2.









Table 3.- Cottonseed, peanuts for oil, soybeans, and flaxseed:
Estimated "mill value" of products on basis of amended price
ceilings for oil, and ypevailing prices for other products
Cottonseed
: : Estimated : Calculated mill
Item : Pice per :yield per :value of products
:pound 1/ : ton oaf ~seed : per ton of seed
-' :'- G ents Pounds Dollars

Crude oil, southeastern mills ..: 12.62 310 39.12
Mbeal, 41 percent protein,:
M8emphis .....................: 1.95 900 17.55
Bulls, Atlanta ..........;......: *5 520 2.60
Linters, f~o~b. mills ..........: 4.5 170 7 .65
Total ................. ...: --- --~---

Peanuts for oil


_ ___


2.26 1,600 36.16
--- ---70.78

Flaxaced


--- --- 100.06


FOS-59


- 11 -


Crude oil, southeastern mills ..5--
Meal, 45 percent protein,
southeastern mills ...........t
Total .....................:


2.15


-570

850


74.10

18.28
92.38


Soybeans


Crude oil, midwrestern mills ....:
Mbeal, 41 percent protein,
Chicago ....**********...*****:
Total .....................:


11.53


300


34.59


Crude oil, Minneapolis ....,....:
Mdeal, 37 percent protein,
Minne~apolis ................**:
Total ..........,.********: ,


10.95

200


680


74.46

25.60


1,280


If Prices of high-protein meals are for January 6; prices of cottonseed hulls
and linters are for January 10.






JANUARY 1942


- 12 -


Table 4.- Price per pound of specified fats, oils, and glycerin,
annual averages, 1937-41
: : : : 1941
__.. __.Its, .1937.1938. 1959. 1940 1/
:Cents Cents Cents Cents Centa

Butter, 92-score, Chicago .........................: 33.2 27.1 25.4 28.7 33.8
Butter, 92-score, New York ....*...................a: 54.4 28.0 26.0 29.5 34.5
01eomargarine, dom. veg., Chicago ...................*. 15,8 15.5 14.7 14.8 15.8
Compounds (animal and veg. cooking fate), Chicago ..: 12.4 10.2 9.3 9.1 13.8
Lard, FPrime steam, tierces, Chicago ............. .'...:11.3 8 .0 6.u4 5.4 8.9
Lard, refined, cartons, Chicago 2/ ............;.."... 12.' '9.2 7.5 6 .4 10.1
01eo oil, extra, tiercess Chicago ..................:' l2.4 8.8~ 8.0 7.1 9.7
01eostearine, bbl., #eur York .......;...........;.....' 9.7 7.2' 6.,B 8.0 9.0
Tallow, edible, Chicago .*.......................: 8.6 6.1 5.5 4.6 7.7

Corn oil, crude, tanks, f.o.b. mills ...............: 8.4 7.1 5.9 5.7 10.0
Corn oil, refined, bbl., N~ew Yark .............J...: 11.5 9.8 8.8 8.3 13.0
Cottonseed oil, crude, thanks, f~o~b. S. E. mills ...: 8.0 6.7 5.6 5.3 9.5
Cottonseed oil, p.s.y., tarck cars, New York ........: 9.2 7.9 6.6 6.2 10.5
Peanut 'oil, crude, thanks, f~o~b. mills .............: 8.4 6.9 5.9 5.7 9.7
Peanut oil, dom. refined, bbl., New York ...........: 12.1 10.2 9 .4 8.8 3/12.8
Soybean oil, crude tankf cars, midwe3stern mills .,...: 8.1 5.6 4.8 4.8 8.5
Soybean oil, dan., crude, drums, New York ..........: 9.9 7.2 6.3 6.4 10 .4
Soybean oil, refined, drums, New York: ..........,...: 10.9 8.4 7.6 7.6 11.3

Babassu oil, thanks, f.o.b. mills, Pacific Coast ....: --- -- -- --4 .
Coconut oil, crude, tanks, f~o~b. Pacific Coast 5/' .: 9.0 6.1 '6.1 5 ,6 3/ 8.4
Coconut oil, edible, drums, New Yark ..........T....: --- --- 8.6 7.8 11.9
Olive oil, edible, drums, New York .................: 31.9 26.0 26.3 3/32.0 62.5
Olive oil, inedible, drums, New York ..........,.....: 19.4 12.9 12.9 19.6 45.1
01ive-oil foots, prime, drums, New York .........:. 111 8.0 7.8 9.0 15 .1
Palm oil, Figer, crude, drums, N~ew York 5/ ........: 8.6 8.8 7.0 7.3 9 .7
Palm oil, Sumatra, tanks, New York 5/ 6 ............ 8,0 6.1 *5.7 5.4 8.8
Rape oil, refined, denatured, drians, N~ew York ...... 12.3 11.0 11.6.~ 14.2 14.0O
Rape oil, blown, drums, New York ......,.,...........: 14.0 14 4 15 .0 17 .4 17.4
Teaseed oil, crude drums, New York ................ 10.8 7.8 10.5 13.5 22.3

Tallow, inedible, Chicago ......******....*....,....: 7.5 5.0 5.1 4.1 7.2
Grease, A white, Chicago .....*................,.....: 8.0 5.5 5.2 4.2 7.3
hebnhaden oil, crude, tanks, f.o~b. Baltimore ......: 5.2 4 .4 4 .0 4.2 6.8
Sardine oil, crude, tanks, Fa^cific Coast ...........: 6.0 4.7 4.1 4.9 7.4
WJhale oil, refined, bl~eached -:Jner, druns, New Yorkp 10.3 9.1 8.5 9.5 10.3

Linseed oil, raw, tank cars, P"inneapolis ...........: 10.3; 8.7 8.8 9.0 9.7
Linseed oil, raw, drur:ms, carlots, New York .........: 10.8 9.1 9.3 9.7 10.7
Perilla oil, drums INew York. .......................: 12.1 10.4 11.7 18.7 20.2
Oiticica oil, drums, !'ev York: ********...........,..: 12.9 11.1 15.0O 18'.9 20.2
Tung oil, drums, New York ..**.........:15.7 13.5 21.0 26.3 32.8

Castor oil, No. 3, bbl., Ye~r York ,..***.........-.. : 10.2 9.2 9.3 11.7 11.1
Castor oil, dehyrdrated, drums, earlots, New York ...: -- --- 15.6 15.2
Cod-liver oil, med. U.S.P. bbl, N. Y. (dol~per bbl.): 26.7 26.8 28.0 58.3 81.0
Cod oil, Newfoundland, drums, New York ****.........: 6.9 6.0O 4/5.3 7/8.6 9.9
Glycerin,- soaplye, 80 percent basis, tanks, N. Y. .: 17.1 g.9 7.8 7.8 10.6.

Conttinued -






FOS-59- 3

Table 4.- Price per pound.of:specified fats, oils, and glycerin,
annual averages, 1937-41 -Continued

Campiled from Oil, Paint and Drbug Reporter, The N~ational Provisioner, and reports
of the Agricultural Mlarketing Service and Bureau of Labor Statistics, Prices in?-
clude excise taxes and duties where applicable.


Reported in tubs prior to July 1940.rliiar
Average for 11 months.
Average far 10 months
Three-cent processing tax added to price as originally quoted.
Prior to March 21, 1941, quoted in bulk shipments.
SAverage for 7 months.





JANUARY 1942


- 14 -


Table 5.- Wholesale prices of fats and oiles Index numbers, December 1939
and 1940, October-Decemnber 1941
(1924- 29 100)

Goup: Dec. :1941
: 1939 :1940 : Oct. :Nov, Dec.


Eight domestic fats and oiled 1/ ....,:
Eight domestic fats and oiled .....:

All fate and oils (27 items) ........5
Grouped by origin::
Animal fate .......................:
Marine animal oils .........:
Vegetable oils, domestic ......:
Vegetable oils, foreign .......s

Butter ..................:
Butter, adjusted g/.......:
Lard . :
Food fate, other ..................:
So&P fats ......................:
Drying oils .......................:
Miscellaneous oils ........:


120
116
144

so
77
75
1)}
118
11)
105


119
.84

93

82
118
111
14)

81
75
75
130
117
107
105


-



-t


so


117
149

79
71
76
136
121
112
106


Data for earlier years beginning 1910 are given in Technical Bulletin No. 737
(1940) and The Fats and Oile Situation beginning December 1940,
1910-14 r 100.
Adjusted for typical seasonal variation.


Table 6.- Prices of specified oil-bearing materials, December 1939 and
1940, October-December 1941

Item Unit : Dec :_ 1941
: ~: 19J9 : _1940 :Oct. :Nov, Dec.
astor beans, Brazi~ian, :-~ : DolrsDllr Dollare Dollars Dollars
shipment, c. & f.,


NrewYork .. ................. 1Long ton :
Copra, bagel, f.o.b. .........:
Pacific Coast ..............: 100 lb. i
Cottonseed, U.S. farm price..:Short ton:
Flaxseed, No. 1, : :
Minneapolis ................: Bu. :
Flaxseed, U.S. farm price ...: :
Peanuts, shelled,::
Runners No. 1, S.E. mills...: 100 lb. :
Peanut, U.S. farm price ....: a n :
Soybeans, No. 2 Yellow, :
Chicago ..................: Bu. :
Soybeans, U.S. farm price ...: I


-- 51.oo 75.90 so.12 77.25


2.04
24.75

2.07
1.80


1.42
24.os

1.64
1,41

5.05
J.22

.95
.51


4.15
50.89

1.87


7.15
4,41

1.5s
1,42


4.02
45.as

1.84
1.60

7.so
4.61

1.60
1.k)


5.12
44.65

2!.00
1.78

g.30
4.79

1.67
1.47


1.15


Compiled from Oil, Paint sad Drug RprealyTrade bulletinn (Chicago), Daily
Market Record (Minneeqpolia), and reports of the Agricultural Marketing Service,





I_


FOS-59


- 15 -


Fable 7.- price per ton of; specified oiflseed meals, December 19J9 and 1940,
October-December 1941

a :t~l ec. : Pc~t~ 1961
L~51 1939 .: 1940 :Oct. :Nov, : Dec.
--:Dgg Dollare Dollars -Dollars Dollars


Copra meal, Los Angeles ...........1 28.80
Cottoneeed meal, 41 percent :
protein, Memphi a ................: 29.50
Cottoneeed meal, 41 percent :.
protein, Chicago ................: 35.50
Linseed seal, 37 percent a
protein, Minnerqpolia ............: 35.50 .
Lineeed meal, 54 percent I
protein, New York ..............: 36.40
Peanut meal. 45 percent protein -
f.o.b. southeastern mills .......r 34.00.
Soyrbean meal, 41 percent :
protein, Chicago ................: 34.95


22.20 38.55 36.45


42.50

3s.35


28.95 36.oo

39.25' 41.45


36.75

42.60


28.90


37.50 35.90


38.50

33.20

40.65

42.50


26.60 31.25 31.25


22.70


34.00 36.97


'29'.60 37.95 39.10


Compiled from records ofteAgri utura Mreing Srie
IfBagged, carlots, except peanut meal.

Fable 8.- production and stocks of batter,~ lard, rendered pork fat,
cottonseed oil, and peanut oil., Npovember 1939 and 1940,
Sqptember-Noavemrber 1941

Item -: .Noy. 1941
: 1939. : 19'K0' : sept. :Oct. : Nov. IfJ
IMil. 1p, Mil. ~ib.'Mil,-lb. Mil. lb. Mil. lb


Production:
Creamery bate ...........s
Lard, Federal inspection '..........8
Rendered pork fat ff ..... .....:
Cottonseed oil, crude .............:
Peanut oil, crude ......:...........:
Stocks,. and of month -:
Batter ............................:
Lerd ............................:
peadered pork fat ff ..,........:
Cottonseed oil, crude baes iajj ..
Peanut oil, cnrde basia'e 1/ ....5


112.J ,117.7
128..4 129.5
--- .15.8
200.7 205.6
1.5 ... 20.6

89.S. `'67.6
89.p 232.5
-.-- 5.1


149.7
S81.6
10.6
129.5
1.1

'203.0
214.3

271.8


136.4
114.1
13.3
20s.5

-186.6


352.1


115.2
127.7
13.9
17e.3
11.5

152.5
171.o
5.4
453.3


Compiled as fdllowes *..
Production of creamery butter and peanut oil, and cold storage holdings of
butter, lard and rendered pork fat, Agricultural Marketing Service.
Production under Federal inspection of lard and rendered pork fat, Burea~u of
Animal Industry.
Factory production and stocks of cottonseed oil, and stocks of pearmt oil,
Bureau of the Censue.
}} preliminary. g/Included with lard prior to NPovember 1940. ]jCrude plue
refined converted to crude basia by dividing by the following factors: Cottonseed
oil, 0.9); peanut oil, 0.94.








































.1,664

56


4,600 .L


16
-86
8,152' 4 ~~


---. 155
-as .0 ..~S
-E155




'7',18 ~i


'5;544..
1,119
67
11; .
1E ..


.5,557
1,209
72
7
10
2
1

6,638 ~


I~'~F~
Fe~$';'
I



.*
..i!
~L


1;.... ..--7.-
-4 .. 'I -
-6,7558 ...1,.200.-


50,958~~ ._34,215 ,.. 55,07 :.,


Compilled flrom~Iinfrnal~ Revenue. recar~ds .au L Inkernal Revenaw*Bul3let~~in

1/ Peliminary. .-' .,:I F?;~~;r
27 Total of rounded rrumbers.


_ LW


'L: "'


745 1,545. .1,795 1,766
228 269 556 ." 27&
,120 .406 .564.- 688' i
85 107 220 155 :
---19 15. .- 6 -
--- --i 131 !;"'--- --
,1,178 .2-,140. .. 3,0'1 -: -2,895 "~


I


I


I


3,'di ~1,724
Z2,4o REF"" WiiT"I


I


UNIVERSITY OF FLORIDA

lIllII III IAIIIIIIIllllll|IIIll
JANUBRY 1942 16 3 1262 089051~428

Table 9.- 01eamargarine: Eroduction and materials used in manrufa~t~ure, -I
United States, November ~1939. and l940, Septeiber-NovemberT 1941 5.. r-. .ie


: November a 1961 1/
S1959 .f--1940: ".Septemrber: Ooctober Novea~l

:A,000-Ib. 1,000- Ib. 1,000 lb. 1,000 lb. 1,000


2tem


ProSduction :


55,655~'~ 5


-'1)$

8'f29~i~
i'


Colored ................... ....:
Uncolared ....................:
Total 2/ ..~...........*.*.:
Materials ulied: :
01eo o'il -.;.-............ ..~......:
01eostearine .................:
Lard neutral .........,........:
01eo stock ...................:
M5onostearine ............,~....
Oleos~tearine oil ..........,..:
Total, animal ...~........:

Cottonseed oil ...............:
Soybean oil ................:
Peanut oil ...................: C
Penoil .....................:
ottonseed stearino ****.**....:
Soybean stearine .,..........:
Total, domestic vegetable :

CocOnut oil ..................:
BabassU 'ail ....,.**&......;
Palm. oil .....................
Palm flakes ...;........'..;.... :
Balm-kernel oil ..............e
Total, foreign vegetable .:
Total fats and oilp ..r....:

ldilk .............****. .......:
Salt ...,****************.....:
Derivative of glycerine ....*:-
Lecithin ...............****.*:
Soda (b'ensoate of) ....ne....:
Vitamin concentrate ...,......:
Misellaneous .........,.....:
Total, other materials ...:
Total, all noteriala .....:


.141
27,751


257
38,868


. 278
29,724


10',908
9,257

17

1
.-.20,540


.9,701
8L074


1


12,586.
5,847
181
43-

.1
-18,506

3,574.
890
905

499
5.268


6,064
1sl33
75
^' 17


- .17870
. ..6.I,696..

-82


18,122-


200
,0B

18 68~'LZ


198 i~;


2,154
1,087
---
,
---