The Fats and oils situation

MISSING IMAGE

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:
AA00005305:00097

Related Items

Succeeded by:
Fats and oils outlook & situation

Full Text












-0~


MBrER 1941


IN THIS ISSUE*:
ARGENTINE rRADE AGREEMENT IN RE-
LATION 00 FATS.AND Osts


NEG 35073 DUSEAU OF AGICULIuIIIA


MOST OF THE FLAXSEED -IMPORTED BY THE -UNATED STATES ORIGINATES IN
ARGENTINA. THIS YEAR CANADA MILL BE ABLE TQ EXPORT SOME FLAXSEED. ARGEN-
TINA NORMALLY SHIPS LARGE QUANTITIES OF FLAXSEED TO CONTINENTAL EUROPE,
BUT THAT MARKET NOW HASBEEN CUT OFF. ALTHOOUH THE SdvIET UNION IS THE
SECOND LARGEST PRODUCING.CQQNTPY,_I H, AS EXPORTED VERY LITTLE FLAXSEED IN
RECENT YEARS.


i;.i,..


TH E oJ-L ST UAT ION


BUREAU OF AGNIil~lL'TRURL ECONOMICS
UNITES SATES DEPARTMENT OF AGRICULTURE

~RE NOVE


I-~


U S. DEPOSITORY




bXOVEMBER 1941 2 -

Tablo 1,- Price per pound of specified fats, oils, and glycorin,
October 1939 and 1940, .kugustLOctobor 1941

3. Oct, 1941
Ito .139: 180: Aug,. : Sopt,: Oct,~
Scents Conts Cents Conts Coagi
auttor, 92-scoro, Chica~go .,,,,.,,..........,,,,,,i 28,4 29,6 35.0 36.6 35.2'
Butter, 92-scoro, Now York .......................: 29,0 30.4 35.5 36.9 35.6'
Oloomar~garine, dom. vog., Chicago ..,,,,,,,....... 15.0 14.5165 16.5 17.3
Compounds (animal and vog, cooking fats), Chicago : 9,7 8,4 15.1 15.9 16,1
Lard, prime steam, tierces, Chica~go .,,,.....,,,,,: 6,6 4.7 10. 1 10,7 9,8
Lard, refined, cartons, Chicago ,,,,,......,,,.,,: 8,0 6.2 11.1 12.4120
01eo oil, extra, tierces, Chicago ..,,,,....,,ne: 10,0 7,0 10.3 10.5 1.
01eostearine, bb1,, N, Y, .,.....,,,,,,,,..,,.,,.: 8,9 6,1 9.8 9.8 10.2 .
Tallow, edible, Chicago ..,,,,.......,...,,,.,,...: 6,2 4,4 8.3 9.0 9,2
Corn eil, crude, tanks, f,c,b, mills .,,,,,.... 6.6 5.1 11.8 12.4 12, 2
Corn oil, refined, bbu,, H. Y. ...................: 9,3 7.7 14.8 15.6 15.4
Cottonseed oil, crude, tanks, f,o,b, S.E. mills .,: 58 44 1. 22-1,
Cottonseed til, p~s,y,, tanik cars, N, Y. ,.,,,,,..: 68 5.4 11.9 13.6 ~ 12.9
Peanut oil, crude, tanks, f,a,b, mills ............ 6.8 4.5 11,2 12,7 12.1
Peanut oil, dom, refined, bbl., N, Y, ,......o.,,,: 10.5 8.o 15.0 15.8 15,9.
Soybean oil, crude, tank cars, midwestern mills .,: 4,9 3,9 9.5 10,5 1.
Soybean oil, dom., crude, drums, N, Y, ........,,: b.8 5.5 1. 1321 1320
Soybean oil, refined, drums, N. Y, ..,,,,,.,,.... 8,4 69 1. 32 1.
Babassu oil, tanks, f,ob.b mills, Pacific Coast ,:-- 9.2 9.5 9.5
Coconut oil, crude, tanks, fr.rb. Pacific Coast 1/: 6.8 5.4 9.3 9.6 9,6
Cocoanut oil, edible, drums, N, Y on....,,,...,.: 9.4 7.5 13.0 13.1 13.8
Olive oil, edible, drums, N, Y. ....o....,......,..: 30.0 38,8 73.6 71,7 7,
Olive oil, inedible, drums, N, Y, .,.,.,,,...,.....: 18.5 25.3 52.3 52.3 5.
Olive-oil foots, prime, drums, N. Y. ..e..:1. 95 1. 70 1.
Palm oil, Niger, crude, drums, N, Y. If ......,,,:i --- 6 170. 11.2 11.6
Palm oil, Sumatra, tanks, N. 7, 1/ .,..........., --- 5.2 10.2 10.7 1018
Rape oil, refined, denatured, drums, N. Y. .....,,: 13.5 14.8 15.6 15.6 15.4
R~ape oil, blown, bbl., N, Y. ,..,,.............,.,: 16,8 17.5 17.5 17.5 17. 4
Teaseed oil, crude,.drums, N, Y, ,...,,.....,,,.,: 13.5 15.6 24,0 26.2 28.0
Tallow, inedible, Chicago .,,,,.,,.....,-n.......,, 5.6 3.6 7.7 8.5 8.6
Grease, A white, Ohicago ,,,...,...,..:5.8 3.7 7.5 8.6 8*8
1Kenhaden oil, crude, tanks, f,o,b, Baltimore ....,: 4.6 -- 7.4 7.8 1
Sardine oil, crude, tanks, Pacific Coast ,.......,: 4.6 7.1 8.0 8,2 ,
Whale oil, refined, bleached winter, drums, N. Y. : 12.5 9.5 10. 5 11.0 1.
Linseed oil, raw, tank cars, Minnea~polis ..s...,..:I 10,0 7.5 10.2 10.3 10.6
'Linseed oil, raw, drums, carlets, N, Y. ..........: 10.2 8.4 11311,4 10,9;
Perilla oil, drums, N. Y. ,.,...,,,.............: 14.5 18,1 21422.6 22,8
Oiticica oil, drums, NJ, Y. ,,,o.,,,..,,,......,,,,,: 21,0 19.0 21222.2 22,2
Tung oil, drums, N, Y, ,,,..,,,,,,,,,,,,....,,,....: 28,2 26.9 34,o 35.5 36. 0,
Castor oil, No, 3 bbl,, N. Y, .,,.....;.....,....,,,: 10.8 9.8 11.5 11.8 1.
Pastor oil, dehydrated, drums, carlots, N. Y. ...,: 15.6 131 16.0 16. 5 1
Cod-liver oil, med. U.S.P. bb1,,N.Y,(dol.~ggr bb1,): 44,0 72.5 s4.5 87.5 87.5
Cod oil, Newfoundland, drums, N. Y. ,...,,,.....: --- 8,0 lo. 5 10.5 10.5
Glycerin, soa~plye, 80 percent basis, tanks, N., Y. : 7.8 7,2 13.0 16.8 16,j
Compiled from Oil, Paint and D~rug Roportor, The National Provisioner, and reports
of the Agricultural Mar~keting Service and Bureau of Labor Statistics, Prices quoted
include excise taxes and Au~ties whero applicable,
1/ Three-s~ent processing tax added to price as originally quoted,





ros-57


- 3-


THE FATS AND 0ILS SITUATION 0


Summary

The duty on flaxseed and duties and excise taxes on imports of

oleo oil ind stearine, tallow, neatsfoot oil, and edible sunflower oil

have been cut in half under the terms of the new trade agreement with

Argentina, effective November 15. Except for flaxseed, the United States

normally does not import any of these commodities in appreciable quaniti-

ties. But with relatively high prices for fats and oils prevailing in the

United States, and with demand increasing, imports probably will be stimu~-

lated if adequate shipping space is available.

Although the duty on flaz~seed was redulced to 32.5 cents per bushel,

provision is made in the trade agreement to increase the rate to 50 cents

after the present abnormal situation is passed. The duty and excise tax

reductions in the case of sunflower oil may be canceled on 6-month's notice

after conclusion of the Anglo-German conflict.

The effect of the changes in duties end excise taxes on prices is

likely to be obscured by changes in other fa~ctors. The price of flaxseed

declined fairly sharply in mid-Oct~ober following announcement of the regree-

ment. But with a Government loan aIvailable and with continuing high costs

for imports, no further marked decline in flaxrseed prices is likely this

5 sason.

i.. Reversing the trend of9 earlier months, prices of most domestic fats

and oils declined in early October. Russian military reverses a~nd un-

icertainty concerning price-control legislation were unsettling factors. Part

of the loss was regained later in the month.

The ocean shipping situation has improved in recent months. Import s

and exports of fats, oils, and oilseeds in August and September were





NOVE~MBER 1941 -

materially larger than those of a year earlier. Pactory production of

fe.ts and oils from domestic materials was nearly 20 percent greater in

thle third quarter this year than last. But consumption also was increased,

and stocks were reduced during the quarter.

-- Hrovember 17, 1941

REVIEW OF RE~CE~T DEVELOPMENTS

BACKGROUNjlD.- Largely because of increases in world supplies,
prices of most fats and oils had declined to low levels be-
fore the outbreak of war in SeTptember 1939. Prices of all
fa.ts and oils advanced at that times. Mlost of the gains sub-
seauently were lost, with the declines being especially
marked ;Ifte~r the closing of important European markets and
the cessation of lar~d imports by the United Kingdom in the
spring of 1940.

Reduced shipping space a~nd increased shipping costs
errly in 1941 restricted the volume of imports and had the I
effect of driving a wedge between prices in the United
St tes and those in surplus-producing areas. hsifune
together with improvement in domestic demand for consumption
and-storage, and Government lord purchases, resulted in
sharp advances in domestic prices of fats and oils during
the first half of 1981. Prices leveled off in July and
Augu~st, but advanced moderately in September.

Prices Decline in October

Under the influence of Russian military reverses and continued un-
certainty concerning price-control legislation, prices' of most domestic
fats and oils' declined fairly sh;rplyr in the first 2 weeks of October.
Part of the loss was regained later in the month.

The index of w~holesa7le prices for ,.11 fats and oils a~ver?6ed .93
percent of the 1924-29 level in October, j points loerer then in September,
but 30 points (4B percent) higher thani in October 1940. Average prices
for lard, butter, and domestic vegetable oils were 1 to 8 percent lower in
October than a month e.-rier. On the other hand, prices for tcllowr end
greases, fish oils, and most imported vegetable oils reached the highest
levels for the year to date.

The Argentine trade agreement, announced October 14, was followed by
a moderate decline in the price of linseed oil. The duty on flaxseed,
effective November 15, is reduced 50 percent under the new agreement, and
the duties and excise taxes on impo sof edible sunflower oil, 01eo oil,
01eostearine, tallow, and nentsfoot il are also cut in half.

Prices received by farmers for flaxseed P~d soybeans were about 20
cents a bushel lower in mid-October than the prices received a month earlier.





FOS-57


- 5


Prices for cottonseed and peanuts, however, continued at rpeltivply high
levels, while prices for imported cu.tor beanls aind copra advanced. The
price for soybeans in mid-September was largely nominal, rs the qu-.ntity
of soybeans availa~ble for market was negligible at that time. The decline
in the price of flsxeced occurred pi~rtly as a result of the announcement
of the reduced rate of d~ut: under the new trsad ai-reement.

Glyperir. Price Ceiling; Announced

Price Schedule :To. j8, announced by, the Office cf Price Administrro-
tion October 28, and effective IHovember 10, establishes ma2ximum7 prices of
11.5 cents perI poun~d for crude glycerin (FO percent gl.Ycerol) tank cars,
delivered, and 18 cents per pou~nd for refined. glyrcrin, tankr cr=s, delivered.
These prices are consirierably below those prevailing before the order wats
announced, In the United States, c~lycerin is produced mainly from fats and
oils as a b:.product in the manufacture of soap. It has a wide variety of
uses.

Soybean Loan Prog~ram Announced

A soylbealn lorn program designed1 to aid in the orderly marketing of
the 1941 crop was an~no~unced by the Deparrtment of Africulture on October 21.
Loanis will. be made through the Commod~ity Credit Corpora.tion at the rate of
$1.05 per bushel for soybea~ns gradinz H~o. 2 or better, stored on farms.
The loan program will onerble farmers to retain so!beans fo0r ma-rketing at
a later time, By providing flow of sor;berns to mills during the lilar,
it is hoped to avoid oVETCTOvding the stort~e facilities of crushing mills
Land commercial w:_rchouses. According= to the Novecber 1 crop report, app~roxi-
mately 111.3 million bushels of soyboons will. be produced. this ywrr, j1
million bush,?ls more than in 1940 when storage supplies of other grains were
not so large as they are this sea.son.

Loan vrlue~s for sayberns stored in approved wnrehoues will be 7
cents per bushel less than for form-stored soyberans. This difference re-
presents the estimated average of stora-Se charges the Conniodlitp Credit
Corporration would be reanired to pay to w; rehousemen chould the producer
fail to payLj his note. Lorns for farm-stored soyb ans will be on a note and
chattel mortgage basis, rand warehouse lorns wlill be on a note rnd loaIn g~ree-
ment ba.sis with warehouse receipts as collateral, Loans on the 1941 say-
bean~ crop will be made until Januacry j1, 1942, and will be available only
to fa7rmrer coolperating in the Agriculturall Ad.justment Admninistration farm
program. All notes will mature on demand, or on June j0, 1942, but loanis on
farm-stored soybeans me~y be exte-nd-d for 1 .rner.

Cottonseed Oil ShorteninP to be Purcha1~sed

On October 24, the Depaertment of Ag~riculture announced 17lans for
the purchase of cottonseed oil shortening for distribution through various
programs. The Surplus Maaketing Administration recently sent announcements
to manufacturers asking them to submit offers of solo.

1942 Marketing got for Peanuts Established

A 1942 peanut mparketing nuota of 1,255,800,000 pounds was proclaimed
November 7 by the Secretary of Agriculture, under authority of the





NOVEMBER.1941


-- 6


Agricultural Act of 1938, as-amended. The marketing quota applies only to
peanuts harvested for the edible trade. On the basis of this quota and
a normal yield factor of 7SO pounds of peatnuts per acre, the 1982 acreage
allotment will be 1,610,000 acres, the sume as that for the 1941 crop.
This quota is not subject to a referendum vote, as marketing quotas were
approved for each of the 3 years, 1341, 1942, and 1343 inl the referendum
held on April 26.

In addition to thle acreage allotment for peanuts for the edible trade,
production goals for 1982 call for approximately 1,900,000 ;?cres of peanuts
to be h-rvested for oil. Growers also are being encouraged to increase the
arcrcge o~f peaLnurts to be ho~ggd off. No limitation is placed on thle a~cre-
ar:e of peanuts harvested for oil or grown for feeding to hog5 :under the
marketing ouota and agricultural consenrvtion programs.

Under the marketing quota p~rogramr, each producer mry market p~eanyuts
f~rom his allotted acreage to desinntatd agencies at a price for which
support is offered '07 the diversion program of the Surplus Markceting Admin-
istrntion. Excess peanuts mayr be sold for crushing without penalty to
designated ageencies at a price determined byr the prevailing values of pea-
nut oil and peanut meal, less handling costs.

Imports ?nd Exports Incrensed in
August andc Sep~tembecr

Improvement in the shipping situation resulted in a j4-percent in-
crease in imports of fats, oils, e~nd oilseeds in August this yerar compared
with l~ct. Earlier in 1341, imports had run 10 to 12 percent below last
years levels. But w~ith the marrked gain in Augulst, imports for the first
8 months of the year, totaling 1,135 million pounds, were only 6 percent
less than the 1,207 million pounds imported in the corresponding period of
c1960. mhe most pronounced gain in imports in August occurred in coconut
oil andc copra, up 50 percent from a year earlier. Imports of flaxseed,
c-stor beans, palm oil, and inedible tlo.1w also were mo-torially larger in
August this you. than Inst, On the other hand, little olive oil or tuzng oil
was imported in August this year.

Exports, chiefly of lard rnd whale oil, also were mate~riallyr lrger
in August than a year earlier. TPhe export total for all itens in the first
8 months of 1941 was 359 million pounds, 2T percent more than the 281
million pounds exported in the first 8 months of 1340.

Preliminery indications point to a further gain in imports in
September. Lord exporfs were well maintained in thit month, but total ex-
ports were somewhat loss than in August, when unusual shipments of whale
oil vere made.

Factory Producton Larger in Third Q~uarter
Than a 'Yor Earl;.er

Factory production of fr~ts and oils from .domestic notorirals was about
j00 million pounds (19 percent) Ereater i'h the third quarter of 1941~ tha~n
in the thirl. a.lr.rter of 1940, when app;;re,:-.1.rrtely 1,603 million p..nds were
prorduced. The most pronounced increases over a year. earlier oiccurred in the







FOS-57


-


production of linseed oil, inedible tallow anyd greases, fish oil, cottonseed
oil, lard, and butt~er. Production of vegretable oils from imported materials
also was larger than a yea~ r erlier, with material. gains in output from im-
ported flaxseed and castor becas.

For the first 9 months of 1941, production of fats and oils from
domestic me-.terials totaled ab~out 6.0 billionl pounds compared with 5.3 billion
pounds in the corresponding period of 1940. Production from imported ma-
terials was "only slightl;- l-arger than a yeatr earlier, with increased output
of castor oil aLnd linseed oil being nearly offset by reduced production of
coconut an~d babalssu oils.

Stocks Reduced

Despite the gains in output, factory mid warehouse stocks of primary
fats and oils on Septem'ioer j0, totaling 1,981 million pounds, were approxi-
metely 256 million pounds smaller than on June 30 and ??S million pounds
smaller than A year ea:rljer. The most notable reduction occurred in cotton-
seed oil, stocks of which on September 's0, including crude oil and refined
oil converted to a crude basis, amounted to -272 million pounds compared with
450 million pounds on Septezber j0, 1940. Stocks of-tung~oil on September 30
~mounted to only 3i million pounds compared.with 6~7 nillion pounds a yecr
earlier.

AR9GEN;TI!E .TRADE~ AGRJI~EEMT ~Ill RELng;0H _TO. FATS.4N OIp LS

The traed agreement bet een the Uni'tedc St.-t.es cnd Argentina, signed
on October 14 and provisionally effectiveron November 15..provides ,among
other things for a reduction in the Unite~d Stat~es duty o~n flexssed from 65
to 50 cents per bushel, end to !2.5 cejnts acr bushel for the duiration of the
existing abnormanl situation in the fluxseed t~rade. The temporPary reduction
to !2.5 c~nts will terminate 30 day3s azfter the President of the United
States, following consultation with the Argentine Government, proclaims that
the abnormal situation is passed.

The agreement also provides for 50-percent reductions in duties anid
excise taxes on imports of oleo oil, 01eostarrir0, tallowJ (edible and in-
edible),ncatsfoot oil, a~nd nentsfoot stock. A BO-percent reduction in the
duty and oxcise t.-x on imports of sunflowert oil alrso is m~ade, but this con-
cession, along with others contained in schedule III of the rgreement, mayr
be withdraw~n aLn time after conclusion of the Anglo-Gor.-.la conflict, pro-
vided 6-month's written notice is givon to the Argentine Government.

The reductions in duties and tcaxs on im7ports of flo.:.seed End the
fr~ts and oils specified will tend to bring bout inCr:.sed imports. Domestic
prices for these colnnod~ities will tend to be reduced from the levels that
would otherwise -prevril, but probably not b-. thle full a..10unt of the duty anld
tax reductions. The "price incidence" of' duty or tax on imports ordinarily
is borne in part byl the importer anzd in pr~rt by the exporter, Hence a re-
duction in the duty or to~ on imports, other things. remaining coual, would
result in some decrease in price in the importing country and some inlcrea7se
in price in the exporting country. The exte-nt to which the various duties
and taxes have been effective ini supporting prices in the Unmited States is






NOVEMBER 1941


n


'United Stktes: Reductions in duties and excise taxes on imports
of flaxseed anid specified fats and oils as provided for in
the Argentine-United States Tr:;de Agreement, effective
lGovember 15. 1941


I : Excise taxr (in
Rate ojf duty _asidi~t~into Aty
:Tariff : M~od~ified:: : Modified
Commodi ty UnFfit : ct : by : Unit Various : b
Revenue b
: of : trade : cs: trade
::1930 ~_:agreement:t: :areement

Flasseed ,........: Bu. : 655 1/ 50~ : one--
Neatsfoot oil .....:Ad. val.:.. 20'; 10 Lb. :k i .5
Neatsfoot stock ... :. 20~ 10 : 3k 1.
01eo oil ....,......: Lb. : d 14 0.5 3t 1.5
01eostearine ......t :, 1 0 .5 "1 3k 1
Sunflower oilt
Rendered unfit
for food ......: --- IFree --- :--- : None -
Other ...........:Ad. val.: 20~ 2/ 100 : b. :4.5d t/ 2.25k
Tallow, edible and i :I
inedible .....,...: Lb. : 0.5d 0.25d : : 1.5k

17 Rate is j2.5 cents for durration of the ex-isting abnormal si~;tulat~ion in
the *flaxseed trrie.
2/ Ma revert to original ra7te after conclueio~n of: nglo-German conflict,
provided i;-month's written notice is given to the Argentine Government.


not accu~ratelyr known. In the case of flxseed, hIowe~ver, it is known thart
prices have been r;ised consideraiblyr more in the United! States as a result
of the duty thanr they have been lowered in Argentina. 1/

Changes in other factors are 'ikely to obscure the effect on prices
of the duty and tax reductions under the nc!w trade agre~ement. And the
effectiveness of the reductions may be limited b:. the abnormal shipping
situation, although the shipping situa-tion has been improved in recent
months.

The availability of a Governme~nt flaxrsesd loan at a rate of $1.85 per
bushel for N~o. 1 seed at leading terminal mr-irkets and the prevailing high
cost of imports will tend to prevent any m:terial decline from the mid-
October level in domestic prices for fl,-xseed. The mid-month price received
by farmers for fla~xsced e.verag~ed about $1.70 per bushel in July and August
and $1.85 in september. In mid-October the price had declined to $1.f;4.

Argentinc produces Inrgo qua~nt ties of flaxseed for export, At
present, the important continental Eur'opeon market is closed to Argentine

1/ Of. Flaxsoed Prices and the Tariff. Senate Document No. 62, 76th
Congress (81 pp., illus.) United States Government Printing Office,
Wa~shington, 1939.





FOS-57


-9


shipments, anJd~this corntryg .remains as the principals .outlet. The United
Stated normally imports about 15 million bushels of flaxseed a year, al-
thiough imports have varied during'the past 30 years from a low of 5 million
bushels in the 1912 marketing year (July-June) to a high of 26 million
bushels in the 1936 mark~eting year. Wlith large supplies now on hand and with
a new crop nearly reaPdy for harvest,.Arg~entina probably could furnish 4
to 5 times our normal imports in the current` 'sasion' if imports of thapt
m,-gnitude were desired and if sufficient shipping space where available.
And Canada this season has an exp~ort,6iufp'lus of around 3 million bushels
of flesseed which may be imported by.t~he Uniited States a~t the reduced rate
of duty. However, with a crop of nearly ;52 million bushels -in the United
Stirtes in 1941, imports of flenxseed dir~ing "th'e current marketing se,-son are
not likely to be greatly in excess of~ the average for the past 70 years,~
despite the high.1evel of domestic co~nsump~t'ic~n' now 'p'revaiii'ng.

The Uni~tedi States usually does :hot i'mporit any of th~e fats nnd oils
for which duty and tax reductions have 'b'e~neh''d'e in the ne'w trade agreement,
During the period of Lard shortage, 1935-37, considerable aunntities of'
tallow wrere imported. $ut since 1937,'to21'w'mpobi'rt's' ha~ve been ~f' slight
importance. 01en oil, 01eo stock, 01pbost'eh'rine, ahil nectsfoot oil normally
are export products of the United Stats'e. Th'v' iew~ of' the compazratively
high domestic prices now prevailing fo'r these commodities, it is possible
that imports will come in under the r~ubed'r~hte's.' Army reb~uirements for
nentsfoot oil, chiefly for leather dryss-~ihg,'Abe ubui~shally.1argege and
molderately large imports of that com~e. ity'rmay be' iExpbeted. ITer~tsfoot oil
does not compete to an;, appIr~ciabtle extent with other fats Fand oils pr~o-
duced in the United States.

Imports~of edible sunflower oil were practically nonnexistent during
the period when the excise tax of 4.5 cents per pound was in effect. The
duty of 10 percent ad valoram plus the trx of 2.25 cents per pound under
the new trode agreement is still fairly high, but some sunflower oil may be
brought in. Production of sunflower~oil in Ar~gentine hns been m,-.terially
incrersed in recent years; practically e.11 of this oil h-s been used to meet
Argentine requirements. It is particularly useful in Argentina now as a
substitute for olive oil, wJhich is in short supp~ly.






N;OVEMEER 1941


- 10 -


Table 2,- Wtholesale prices of fats and oils: Index numbers,
October 1939 and 1940, August-October 1941


(1924-29 = 100)
Group: Oct. 19
: 1939 :' 194 Aug,. .: Sops, Oct,


Eight domestic fats and oils 1/ .....:
Eight domestic fats and oils ........I

All fats and oils (27 items) ........:
Grouped by~ origin::
Animal fsts ,.,,....,.,o......,,,,.:
Marine animal cils ,..............,:
SVegetable oils, domestic ..,,,,.,,,,:
Vegetable oils, foreign ..,,,,,,...:
Grouvad by use
Butter ,,o..,,........o......,,,,:
Butter, adjusted 21 ,......u,,,,,:
Lard ...........,..................:
Food fats, other ..,,,,,,,.....,.o.: i
Soap fats ......o.....,.......,,.:
Drying oils ,,.....,,,,,,...,......,:
Miscellaneous oils ..,,.,,,,,,,,,.,,:


117


96

84
117
1~22
142

83
82
135
116
116
103


93

81l
120
116
1 4

so
77
75
1~3
118
113
lo5


63 91


63
83
70
92

65
62
50
71
73
100
r6


80
114
110
141

so
;2
77
125
108
113
102


1/ lg~10-1 =oo 100.- -- -
2/ Adjusted for typical~ sonsonal variation.


Table 3.- Prices of specified oil-boaring materials,
October 1939 and 19401 August-October 1941

:Oct : 1941
Itom Unit
: 1939 :1940 Augf. : Sept. Oct,
:Dollars Do llars Dollars Dollars Doallars


Castor beans, Brazilian,
shipat., c. & f.,New York .:Long ton 5
00pra, bags, f,o~b,::
Pacific Coast ............,: 100 lb, :
Cottonseed,U.S. farm prico ,:Short ton:
Plaxseed, No. 1, : :
Minnecapolis .....ne.,,.,,,,: Bu. :
Flaxseed, U.S. farm price ..: :
Peanuts, shelled,::
Runners No. 1, S.E. mills .: 100 lb, :
Peanuts, U.S. farm prico ,,,: :
Soybeans, No. 2 Yollow, :
Chicago ................,,,. Bu, :
Soybeans, U.S. farm prico ..: :


--51,00 68,40 68r,00 75.90


1,42
21.55

1,47
1,27

4,75


4.06
49.83

1.99
1,85

7.00


4.15
50.89~


22,88




5.38


3,98
36.94

1.89
1,68

6.95
4,29

1.57


1.83
1.'61


Compiled from Oil, Paint and Drug Reporter, Daily Trade Bulletin (Chicago), Daily
Market Record (Minneapolis), and reports of thie Agricultural Marketing ServPice,






FOS-57 11 -

Table 4.- Price per ton of specified oilseed meals,
October 1939 and 1940, August-October 1941


Item 1/ : October :1941
-- : 139 1940 : A iu6ust_ :Se~ptember: October_
:Dollars Dollars Dollars Dollars Dollars

Copra meal, Los Angeles ......: 30.65 20.50 37.50 39.60 38.55
Cottonseed meal, 41 percent
protein, Mdemphis ...........s 25.25 25.05 34.45 39.75 36.00
Cottonseed meal, 41 percent
protein, Chicago ...........: 140 30.00 40.25 45.65 41.45
Linseed meal, 37 percent:
protein, Minneapolis .......: 33 .10 25.10 53 .50 3 T0. 00 37 .50
Linseed meal, 34 percent:
protein, New York ..........: 37.00 25.45 28.10 32.20 31,25
Peanut meal, 45 percent:
protein, f.o.b.southeastern :
mills ......................: 30.25 21.05 32.94 38.55 34.00
Soybean meal, 41 percent
protein, Chicago ...........: 28.30 25.30 36.20 41.40 37."5

compiledd from records of the Agricultural marketing Service.
1/ Bagged, carlots, except peanut meal.

Table 5.- Production and stocks of butter, lard, rendered pork fat, cottonseed
oil, and peanut oil, September 1939 and 1940, July-Septembere 1941

Item: Sept. : 19421
Item : 1939 : 1940 : JuX v,. :Sept. 1//
:Mil. b. 161 lb. il. lb. Lii1. lb. Ml b
Production
Creamery butter ..............: 133.8 146.2 196.7 171.3 149.7
Lard, under Pederal inspection: 85.3 84.3 95.8 87.0 81.6
Rendered pork fat 2p .....'....: --- --- 12.6 11.0 10.6
Cottonseed oil, crude ........: 161.2- 111.4 26.2 33.8 129.5
Peanut oil, crude ............: .7 1.5 4.3 1.9 1.1
Stocks, end of month
Butter .....................: 154.5 128.1 178.5 200.2 203.0
Lard .........................: 78.8 23,5.7 332.9 282.7 214.3
Rendered pork fat 2/ ......'...: --- --- 7.4 5.4 3.7
Cottonseed oil, or~de basis 3/: 552.0 453.7 343.4 284.0 271.8
Peanut oil, crude basis 3/ ...: 30.4 13.0 --- --- 33.9

Compiled as follows:
Production of creamery butter and peanut oil, and cold-storage holdings of butter,
lard and rendered pork fat, Agricultural Larketing Service.
Production under Federal inspection of lard and rendered pork fat, Bureau of
Animal Industry.
Factory production and stocks of cottonseed oil, and stocks of preanut oil,
Bureau of the Census.
L~Preliminary.
Included with lard prior to November 1940.
Crude plus refined converted to crude basis by dividing by the following
Factors: Cottonseed oil, 0.93; peanut oil, 0.94.




UNIVERSITY OF FLORIDA .


NOV~EMBR 1941 12 3 1262 08905 1717

Table 6.- 01eom~argarine: Production and mlateriales used in manufacture,
United States, Septerber 1"39 and 1940, July-September 1941

Item : S ep temb er :_ 1941 1/
S1~9_9 : 1940 : July : Augus t :Sep
: 1,000 lb. 1,000 lb. 1,000 lb. 1,000 lb. 1,00
Production::
Colored ..........: 108 214 ,280 252. .255ai
Unolre ............: 27,999 26,328 2,085 24,551 $ A
Total 2/ ................:~ 28,10~7 26,i542 27,3~565_ 24,803 L
Materials uised::.
01eo oil ...................: 862 1,240 1,505 1,241 1,
01eostearind ...............: 329 282 237 162 5
Lard neutral ...............: 115 426 651 538 -:64
Oleo stock .................: 65 95 140 132-
Monostearine ...............: --18 12 10 1
01eostearine oil ...........: ---- ---
Total,animal ............: 1,371 2,061 2,345 .2 ,083 5,6
Cottonseed oil .............: 9,034 9, 956 11,413 ..10,131 -- 1249
Soybean oil ............ ....: 7,371 7,605 4,912 4,002 5,)
Peanut oil .................: 258 153 2.21 183 1
Corn oil ............... ....: 35 1 55 43 5.84.
Cottonseed stearine ........: 10 --- -- --- --..:.'i
Soybean stearine ......~.....: --- -- 1 --
Total,domestic vegetable : 16,708 17,715 16,602 14,359 18,9
Coconut oil ................: 3,113 1,142 2,474 2,421 3,-
Babassu oil ................: 1,40'; 331 -- ---29
Palm oil .................: --- --- 667 8347 905'i
. Palm-kernel oil ............: --- --- --- 285 &~~ .
Palm stearine ..............: --- --- 28 -----
Total, foreign:
vegetable .............: 4,522 1,473 3,169 3,553 5,26 588
Total fats and oils .....: 22,601 21,2491 22,1186~ 19',95 5 26,
Bilk .......................: 5,297 5,118. 4,919 4,582 6,
Salt and other miscellaneous: 1,281 1,112 1,026 932 1,3


Compiled from internal Revenue records and Internal Revenue Bulletin.

1/Preliminary. ...
2/ Ttal of Lunrounded numbers. .. .