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:
AA00005305:00098

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Succeeded by:
Fats and oils outlook & situation

Full Text













Illl~v 19~L~


IM HIlS IBBUE:
ILIZ.ATION OF FATS AND 01LS IN THE
DRYING INDUSTRIES


PROPORTIONS OF PRINCIPAL OILS IN TOTAL VOLU ME
OF FATS AND OILS USED IN DRYING INDUSTRIES*,
UNITED STATES, AVERAGE 1931-40, AND 1941


jiI_l


*


' .


1931140
,L/OITICICA 0.7%


1941


olTicicA 3.5%


/ OTHER 0.3%


i~t


TIOTAL: 679.488,000 POUNDS


TOTAL: 1.053,788.000 POUNDS


*PAIINT: VARNISH, LINOLEUM. OILCLOTH. AND PRINTING INK


'I:,.ij 5 ENU~~im T OF AGRICULTURE


NEG 42184~ BUHEAU OF AGRICULTURAL ECONOMICS


STHIE HIGH HATE OF CONSTRUCTION ANDO INDUSTRIAL ACTIVITY IN 1941, CONSUMP -
li~l~''%S~ i P M AND OILS BY THE DAVINYG INDUSTRIES DURING THE YEAR WIAS THE GREATEST ON RE-
dit WI:ttlLTIES IN OBTAINING TUNG 01L FROM CHINA AND PERILLk 01L FROM JAPAN RESULT-
:IC;lj;~~ Ir HARMED INCREASES IN THE PROPORTIONS OF OTHER OILS USED, ESPECIALLY LINSEED, CASTOR,
NDl OITICICA OILS. LINSEED AND CASTOR OILS PROBABLY WILL CONSTITUTE A STILL GREATER
;0PIORTION OF TOTAL CONSUMPTION IN 1942.


BUJREAU OF AGRICULTURAL ECONOMICS
UNITED STATES DEPARTMENT OF AGRICULTURE
















Item I Anru 1
3 3 Fbruar I M


INDER NUMBERS (1926-29 100)

cLght domestic fate and ois 2/.....................................: 86 101 125 127 133
Eight domestic fata and oils .......................................: 59 76 89 90 94

All rtab and oils (27 Rome) .......................................: 64 79 W7 98 102

a .......... ........................................ 59 73 83 84 89
Marine animal oils ............................................ 89 105 125 126 126
Veget~aol oils, domestic ......................................... 71 84 125 128 130
Yegetable oils, Foreig ........................................ 89 114 156 160 161

G crr .............................................. 62 74 79 78 85
Butter, seasonally adjusted ....................................... 65 78 76 76 89
Ilard ...................................................s 47 65 93 97 97
lood fate, outer ............................................. 67 93 162 142 142
Soarp fate ................................................. 65 90 128 128 128
Drying oila ................................................ 102 105 124 134 140O
MKLeclananeo ones ............................................ 100 88 113 114 114
Prices compled from Oil, Paint and Drug Reporter, The National Proviaoner, and reports of the Agricultural Market,*
ing Admkinitration and Burean of Labor Statistics. Priesa quoted include excise taxse and duties there applicable.
Index numbers for earlier years beginning 1910 are giwen In Technica Bulletin go. 737 (1960) and The Fate anrd 011s
Situation beginning December 1940.

hree-cent proceeeilng tax added to price me originally quoted.
1910-14 100.


Table 1.- Wlholesale price per pound of fate and oFIs at specified erkets, and indaz
numbers of prices, April 19WD and 1941, Februar-Appril 1942

PRICBLS


Butter, 92-aore, Chicago .........................................
Butter, 92-ecore, New Ylorkr .........................................s
01eomargarine, dam. veg., Chicago ..................................s
Compounde (animal and veg. aooking fat), Chicago ..................s
Lara, loose, Chicago ............................................:
Ilard, prime at~eam, tierese, Chicago ................................s
lard, refined, carbons, Chicago ....................................s
01so oil, extra, tierces, Chicago ..................................:
Oleastearine, bbl., N.Y. ..........................................:
Tallow, edible, Chicago .........................*.................

Com oil, crude, tanks, f.O~b. aille ...............................:
Corn oil, refined, bbt., N.Y. ......................................:
Cottoneeed oil, crude, tanks, f.a.b. 3. E. mill ..................,:
Cottonseed oil, p.a.y., tank cars, N.Y. r...........................r
Peannt oil, crude, tanks, f.o.b. mill .............................:
Peanut oil, dom. refined, bbl., N.Y. ...............................:
Sopbean oil, crude, Sank cars, midrestemn mill ....................:
Saybean oil, dom., crude, drum, N.Y. ..............................:
Soybeen all, refined, drum, N.Y. ..............-....................:

Babasau oil, tanks, f.o.b. mill, Pacific Coast ....................:
Olive oil, edible, drums, NJ'. .....................................:
Olive oil, inedible, drums, N.T. ...................................:
Olive-oil foota, prime, drum, N.Y. ................................s
Palm oil, Niger, crude, drum. N.Y. 1/ .............................:
Rape oil, drums, N.Y. ...........................................
Rape oil, blann, drum, N.T. .......................................:
Teased oil, crude, dumas, N.Y. ....................................:

Tallow, inedible, Chicago .........................................:
Grease, A white, Chicago ..........................................:
Menhadeu oil, crude, tanks, f.o.b. Baltimore .......................:
Sardine oil, crude, tanks, Pacific Coast ...........................:
Whale oil, refined, bleached winter, drum, N.T. .............,....:

Luseeed oil, raw, tank care, MLnneapolia ...........................:
Linseed oil, raw, drum, carlote. N.Y. .............................r
Perilla oil, drum, N.Y. ..........................................:
Ohitica oil, drum, N.Y. .........................................:
Tu~ng oil, drum, N.Y. ...........................................:


4.5
L.6

5.1
9.5

10.3
10.9
19.9
18.8
25.4


Carstor oil, No. 3, bbl., N.Y. ................ ................... ...: 12.8
Caator oil, dehydrated, drums, carlots, N.Y. .......................: 18~.1
Cod-liverr oil, med. U.S.P. bbl., N.T. (dol. per. bbl.) .............: 48.6
Cod oFi, Newfioundland, drums, N.Y. .................................:--


9.9 13.6 13.8 13.8
13.7 17.6 18.3 18.5
79.I. 78.5 78.5 81.2
9.8 11.5 11.3 11.3


iiii
ii



i
:


27.9 33.2 34.8 34.9 3 ,g
15.0 14.5 19.0 19.0 19.0
9.4 12.4 17.1 17.0 17,0
5.3 7.0 11.4 11.4 11.4
6.1 8.6 12.2 12.7 12.7
6.4 9.0 13.4 13.5 1.
7.0 8.9 13.0 13.0 13.0
6.1 8.4 10.8 10.5 1.
5.0 7.6 9.7 9.8 9.8


-- 10.7
75.7 75,7 75.7
59.3 59.3 59.3
196 19.8 19.8
12.2 12.2 12.0
15.5 15.5 15.5
18.2 18.2 18.2
30.0 30.0

9.3 9.3 9.3
9.6 9.6 9.6
8.6 8.9 8,g
8.9 8,9 8.9
111 11.1 11.1









S*THE TATS AND 0 LS SITUATI 0N


Summary

Demand for fats and oils is expected to show further improvement dur-

ing 1942, and, with maximum prices for most items fixed by orders of the

Office of Price Administration, the monthly rate of actual co~su~mption

probably will be increased unless restricted by Government action to con-

serve supplies. Although the inventories of finished goods held by dealors

and consumers are larger than usual and may help to supply consumption re-

quirements, present prospects are that total apparent disappearance of

primary fats and oils in 1942, if unrestricted, will equal or exceed the

record disappearance of nearly 11 billion pounds in 1941. Disappearance in

the first quarter of 1942 was slightly gre~tor than in the first quarter of

1941 and was about equal to the average quarterly disappearance for 1941l es

a w~hole.

Production of fats and oils from domestic materials in 1942 is likely

to be about 1 billion pounds greater than in 1941, but imports of fats, oils,

and oilseeds in terms of oil, which in recent years have varied from 1.5 to

2.5 billion pounds annually, may be much! smaller then in 1941. With mount-

ing lend-leapse requirements, factory stocks of primary fa~te and oils 7.re

likely to be reduced materially in 1942. The low point will occur, season-

ally, in late summer, before new-crop oilseeds move to market in volume.

Disappearance of paint and varnish oils set a now high record in

1941. Requirements for such oils are expected to continue large this year,

unless consumption is restricted by Government order. The prohibition of

non-~essential building recently announced by the War Production Board will

tend to reduce the quantity of paint and varnish oils needed, but this






Mayl 1942 4 -

reduction may~ be about off set by incrossed use of such oils for ships and

armaments, defense housing, and possibly for repainting and redecorating

_purposes. Supplies of the "fast-dryings oils tung, oiticica, and perilla -

will be very smell, but abundant supplies of linseed oil are in sight.

Prices of linsood oil and butter, which are not restricted by ceil-

ings, were conrsiderelbly higher in April than in I.arich but the pricq of butter

hzas since declined. Prices of fats and oils generally are not expected to

change materially in thle next few months.

--May 15, 1942

REVIEW OF RECENT DEVELOPM~ENTS

BACKGROOUND.- With large world supplies available, prices of
fats and oils were low in 1939. Prices advanced that fall,
following the outbreakr of war in Europe, but declined in
the spring of 1940., During the first half of 1?41, prices
advanced sharply, reflecting a tight shipping situation for
imported materials, marked improvement in domestic dmemand,
and Government purchases of lard for exp~ort. Prices tended
to level off during the second 10.1f of 194C1, partly because
of a temporary improvement in sc~ipping and partly because
of price-control measures. In t~he first quarter of 1942,
however, further ndvances we~r3 mdE~, notably by lord and
linseed oil. Maximum or coiling prices for fats and oils
were first established on D~cor~bor 13, 1941. On January 2,
1942,l the mezimum price schedule was revised u~pward. On
February 4, a further incronss in the maximum price of lard
wsn mnde, and the ceiling on linseed oil was removed.

Prices of Linsood Oil and
Butter Highor in April

*The wholesale price of 92-score butter at Chicago rose from 36 cents
to 39 cents per pound during Ap~ril, anrd averaged 37.2 conts for the month,
compared with 34.4 cents in March. The average price for linsood oil also
was higher in April th,?n in March, as a result of a price rise during March.
Wholesanle prices of other fats and oils remained at ceiling levels. Be-
cause of the higher prices for linseed oil and butter, the index number of
wholesale prices for 27 leading fets and oils, at 102 percent of the 1924-29
average, was 4 points higher in April than in Merch. The index was 23 points
(29 percent) higher in April this yc~r then last.

Soybeun prices declined moderately in April, but rose again in the
first half of May;. Farmers pro continuing to hold large stocks of beans.
Flaxseed prices at Minneapolis declined from the high of over $2.70 per







early
~ushel in late Mardh and/April to about $2.55 per bushel ill early May. Prices
of soybean meal and linseed meal averaged about 10 percent lower in April and
early May than in March, and the price of cottonseed meal was about 5 percent
lower.

Aggparan Dis~aeppearnce of Fa~ts_ an 0.s_
L ~gr in First ggggetl r_ Thic Year Than Las~t

the apparent disappearance of fats and oils (excluding farm-produced
butter and lard) totaled nearly 2.5 Dillion pounds in the first quarter of
1942, about 100 million pounds more than in the first quarter of 194F1 and
lightly more than in the fourth quarter of 1941. Major increases in dis-
appearance over a year earlier were in inedible tallow a~nd grosses, linseed
oil, lard, corn oil, sunflower oil, and castor oil. W~ith diminished sup-
plies, disappearance of cottonseed oil, coconut oil, peanut oil, tung oil,
palm oil, and olive oil, on the other hand, wazs reduced. dise~ppearence of
primary fats and oils during 1941 (including farm butter and lard) totaled
nearly 11 billion pounds compared with :l.8 billion pounds in 1940.

'Part of the increased dise.ppeazrance of primary fats and oiled in 1941
undoubtedly resulted from stocking of finished goods by dealers and large
consumers under the stimulus of rising prices. This influence evidently
continued to operate when retail prices advanced in the first quarter of
1942. The ceilings established early in 1942 on wnholosele prices of fats
and oils, together with the general price order establishing maximum retail
prices, probably will have the effect of stabilizing prices of fats and oils,
except linseed oil and butter which are not covered by the orders, at nearly
all levels of production and distribution for se-verPI months eat least.

Actual consumption of fats and oils, asnd yr~oducts co--taining fatal anJd
oils, increased in 1941 fnd earl 1942 ~s a. result of marked improvement in
industrial and building activities and in consumer purchasing power. Demand
for fats and oils is expected to show further improvement during 1942, and,
with fixed maximum prices for most fats and oils, the monthly rate of actual
consumption probably will be increased unless restricted by governmental.
action to conserve supplies. Although inventories of finished goods hedd
by dealers and consumers are larger than usual and may help to meet consuap-
tion requirements, present prospects are that total apparent disappearance
of primary fats and oils in 1942, if unrestricted, will equal or exceed the
record disappearance in 1941.

Factory Stocks .Reduced Slightly
During First QgE~rter

Factory and warehouse stocks of primary fats And oils, as reported by
the Bureau af the Census and the Department of Agriculture, totaled about
2,181 million pounds on Mar-ch 31 compaz ad with 2,233 million pounds 3 months
earlier and 2,517 million pounds a year earlier. Stocks of cottonsood oil,
lard, coconut oil, inedible tallowr rnd greerses wore materially smaller on
March 31 this year than last. Stocks of soybean oil, linseed oil, and
butter, however, were somowha~t larger. Factory stocks are exp~ected to
decrease further during 1942, and probe.bly will be at an unusually low level
in the late summer before the output of vegetable oils from 1942 crops begins
in volume.







riAY 1942


- 6-


More castor beans were on hand :-larch 31 this year than last, but stocks
of copra were greatly reduced. Among the domestic oilseeds, stocks of cotton-
seed, totaling 503,000 tons, were 19 percent smaller or. March 31 than a year
earlier. SuLfficient supplies of flaxseed and soS-beans are available in mills
and warehouses and on farms to permit crushing mills to operate at or near
capacity until new-crop oilseeds become available this summer and fall. A
fairly large proportion of the soybean supply, however, is still held on
farms, and some soybean crush~ing mills have been forced to reduce or suspend
operations because of lack of beans.

Factory Production up Moderately
From a Year Earlier

Factory production of fats and oils from domestic and imported materials
in the first 3 months of 1962, totaling 2,1;34 million pounds, was about 120
million pounds larger than a year earlier. Outout of lard, tallow and greases,
linseed oil, soybean oil, castor oil, and corn oil was materially greater
than in the corresponding period of 1941, but production of cottonseed oil,
peanut oil, coconut oil, and butter was reduced. Total production is expected
to exceed that of a year earlier throughout 1942, with the increase being
especially marked in the second half of the year. On the basis of expected
livestock slaughter and other factors, and present indications as to oil-
crop acreages, production of fats and oils from domestic materials in 1942 is
tentatively estimated at 10 to 10.5 billion pounds compared w~ith 9.3 billion
pounds in 1941. Such production may reach 11-5 billion pounds in 1943 if
weather conditions this summer and fall are favo-able for crop production.
Production from imported materials both this year and next, however, is likely
to be materially smaller than in recent years. In 1?40 production of fats
and oils from imported materials amounted to approximately 758 million pounds.
Imports of fats and oils, as such, in 1940 amounted to 896; million pounds.

Use of Oiticica Oil Restricted

Oiticica oil, derived from a nut gro4wn in Brazil, was made subject to
the terms of Seneral Preference Order Mr-57 by action of the War Production
Board effective April 15. Oiticica oil is a substitute for tung oil. The
amended order restricts the use of either tung or oiticita oil, any comtbina-
tion of them, or a mixture of either vith other oils, to war orders with
ratings of ,-2 or higher; orders placel by the Defense Supplies Corporation;
orders for the manufatcture of linings or coatings for cans used in food
processing, and orders to comply withi safety, underwriter or sanitary
regulat ions.

Restrictions on Ulse of' Hi.;h Lauric
Acid Oils Modified

As originally issued, mineral Freference Order !4-60 limited the use
of coconut oil and other high lauric acid oils after Mayr 1942 to processes
in which a high percentage of lglcerine is recovered. An amendment issued
on Mar 11, however, ?ermits small quantities of surch oils to be used until
October 1442 in the manufacture of edible products other than margarine,
shortening, and cooking fats. The amendment also exemnts tucum oil and
mur~umr oil from restrictions regarding; utilization in edible products.







-7-


?bse ~tookiI oil and murumurn oil aire produced from palm kernels imported in
Ablkdl qusitki~es 'from Bras'l.

Detailed Schnedule of Maximum Prices for
Cottonseed Oi'l Announced

A schedule of maximum prices for crude and refined cottonseed oil was
is~iabd bytthee Office of Price Admifnistrati~on in Amendment No. 1, effective
MYb~ 11; t6 the genetal price schedule for fats and oils (No. 53, as revised).
;g~Iimud~m p~ices f67 crude cottonseed oil, f.o.b. mill, in cents per pound
dre as follows: North Carolina, Souith Carolina and Tennessea,.12.75;
Mid~issippE i Valley, ~Alabama and Georg'ia,.12.625; Texas a;. Oklahoma, 12.50.

Maximum prices per pound for refined cottonseed oil, delivered, in
tank cars, are as foiowJs:
:Bleach- :Cooking or: : Hydo ihtie
SSalad oro- ih ie
toca~tiox.lbe rmeooie winteri zed. genated-uor hydro-
u summer :summer oil "margarine genated oil
: ~yellow oil : ox1
:Cents Cents Cents Cents Gents

Sain Francisco, Calif. : 14.50 15. 32 15. 70 15.90 16.o5
New Yor~k, N. T. ......: 14.30 15.12 15-50 15- 70 15.85
Colum'bus, Ohio '.......: 14.28 15.10o 15.48 15.68 15-83
Chicago, Ill. ........: 14.23 15.05 15.43 15.63 15. 78
Cincinnati, Ohio .....: 14.23 .15.05 15.43 15.63 15-7e
Louisville, Ky. ......: 14.19 15.01 15.39 15.59 15-74
St. Louis, Mo1 ...,...: 14.14 1L.q; 15-34 15.54 15.69
'herlotte, N. C. .....: 14.09 1.1 15-29 15.49 15.64
Kansas City, Mo. .....: 14.09 14.91 15-29 15.49 15.64
Memrphis, TIenn; *... 13.99 14.81 15-1;9 15. 39 15-54


ti Usual or normal differentials are to be used in determining maximum
prices a~t locations and for grades not specified in this table. Maximum
pride for'-futures contracts in prime summer yellowr oil on the Rev York and
NPewt Orleahs exchanges were set at 14.30 cents per pound, compared with the ~
previous ceiling of 13.98 cents per pound.

Price tei~lings Placed on Retail Prices
of Fats and Oils and on Gottonaeed
Soybean, and Peanut' Meals

Retail prices of fats and oils (excent butter and linseed o~il) and
products Oontaining fats and oils, and prices of cottonseed, soybean, and
peanut meals are subject to the General Maximum Price Regulation issued by
the Office of Price Administration on April 28, which forbids any seller to
sell any commodity included under the regulation at a price above the highest
price a~t which he sold it in Mar-ch. Linseed meal was expressly exempted from
the regulation. Wholesale prices of fats and oils, except butter and linseed







MAY 1942 --8 -

oil, are covered by Price Schedulee 53 and 92, which goa)Aars in effort.
Unprocessed oilseeds are exempt from the regulation.

Price Ceilings Set on Manufacturers'
Sales of Paints and Varnishes

'By order of the Price Administrator, in Temporazry Maximum Price
Regulation No. 19, manufacturers were forbidden to sell oil,paints and
varnishes after April 21 at prices higher than those charged on April 12.
The order is a temporary one, effective for 60 days. Sales by wholesalers
and retailers are apparently governed by General Maximum Price Regul~ti.on '
issued April 28.

Large Quantities of Lard, Margarine, and
Butter Bought by AMA in April

The Agricultural Marketing Administration in April bought about 107
million pounds of lard, compared with an average of about JS million pounds in
previous months; about 16 million pounds of margarine, compared with total
previous purchases of 1.1 million pounds; and approximately 5 million pounds
of butter, compared with about 5 million pounds in March and relatively
small quantities In previous months. Smaller :purcharses of edible tallow,
Vitamin-A oils and shortening also were made during the month. The se
purchases were made largely to meet lend-lease requirements.

Requirements for Drying Oils at High Level

The-rate of consumption of the products of the drying industries
(paints, varnishes, linoleum, oilcloth, and printing ink) is determined large-'
ly by the volume of construction aind the ra~te of industrial activity. In
1941, with industrial activity in the United States at a new peak and new
building at the highest level in recent years, a record consumption of fate
and oils in the drying industries of 1,054 million pounds was about 55 per-
cent above the 10-year (1931-40) average.

Industrial activity is expected to increase still further in 1942 in
response to wartime demands. Whether new construction will continue at the
same rate as in 1941 has become a matter of conjecture since the War
Production Board, on April 28, placed a ban on nonessential projects cost-
ing over 500 dollars. However, civilian repainting and redecorating if
not restricted, probably will continue at a high level, and the large
quantities of paints and varnishes that will be needed this year for ships
and armaments add a new and unpredictable element to the total requirements
for drying oils. Altogether, it appears likely that these requirements may
be at least as great in 1942 as in 1941. During the first quarter of 1942,
combined apparent disappearance of 4 principal drying oils (linseed, tung
oiticica, and perilla) was 228 million pounds, nearly the same as average
quarterly disappearance in 1941.







708-6)


- 9-


UTILIZATION, SUPPLIES, AND1 PRiIC$S OF" DRYING OILS IN 1342

Supuolies of "Fast-Dryirng" Oils Reduced; Abundant
Supply~ of Linseed Oil in Sieht

A greater proportion of fats and oils from foreign sources is normally
used by the drying industries than by any other class of users. In the 5
years 1935-39, only 30 percent of total consumption was of domestic origin.
Tlhe chief oils and oilseeds from foreign sources in that period were flaxseed
from Argentina, tung oil from China, and perilla oil from Manchuria and
Japan. Difficullties in obtaining tung oil from China and perilla oil from
Japan have resulted in a greater use of oils of domestic origin and of oiticica
and castor dils from Brazil. In 1941. 50 percent of the fats and oiled used by
the drying industries were of domestic origin. Consumption of tung and
perilla oils amounted to only 7 percent of total utilization in 1941 compared
with 23 percent in the 5 years 1935-39. but consumption of oiticica and
castor oils smoonted to 8 percent of the total compared arith 2 percent in the
earlier period. (Tables 2-6 for recent data.)

The present situation in the Far East apparently prevents imports of
any important quantities of -tung oil from China. Within factory and warehouse
stocks of 31.5 million pounds on March 31 and a prospective domestic produc-
tion of about 5 million pounds in 1S4j, supuies of tung oil in sight for
the remainder of 1942 and for 1943 total about 37 million pounds, or about 21
million pounds on an annual basis as compared with normal consumption of 120
million pounds annually. Increasing quantities of oiticiea oil have been
used for many of the same purposes as tung oil, but a near failure of the
oiticica crop in Brazil is reported this year. Another substitute for tung
oil is dehydrated castor oil. Although there are abundant supplies of castor
beans in Brazil, lack of shipping space may limit imports. Total capacity in
the United States for dehydrating the natural oil for use in paints and
varnishes is ?estimated to be about 50 million pounds annually. SupJplies of
perilla oil arse vanishing. Factory and warehouse stocks on Mlarch 31 were
only 3j.5 million pounds, and no further imports can be expected during the
war in the Pa~cific.

While supplies of "fast-drying" oils are thus very short, the total
supply of other oils-used by the drying industries, chiefly linseed and soy-
bean, is relatively large.

The total supply of linseed oil and flaxseed in the United States on
March 31, 1942 was about 550 million pounds in terms of oil. Reported
factory and warehouse stocks of linseed oil amounted to 236 million pounds,
and stocks of flax-seed, including stocks on farms not being held for seed,
amounted to about 17 million bushels, equivalent to about 320 million
pounds of linseed oil.

Apparent disappearance of linseed oil in the first quarter of 1942 was
approximately 220 million pounds. If this rate of disappearance continues
during the second quarter, stocks of linseed oil and flaxseed in terms of
linseed oil vill have been reduced to about 330 million pounds by J~uly 1, the
beginning of the new crop year. From the 1942 domestic crop of flaxseed







MIAY 1942


- 10 -


possibly j2 million bushels, yielding about 600 million pounds of oil, will
be available for crushing. Hence a total supply, exclusive of imported, of
over 900 million pounds in terms of linseed oil appears possible for the crop
year 1942-4).

Canadian production of flaxseed will be greatly expanded this year and
a surplus over domestic requirements of as much as 5 million bushels may be-
come available for export to the United States. In Argentina, 75-85 million
bushels of flaxseed were estimated to be available for export on March 27,
but shipping difficulties may present any large-scale movement of flaxseed
from Argentina to the United States.

About Ci0 million pounds of soybean oil were used in the drying
indus tries in 1941. Exceptionally large supplies of soybean oil will be avail*
able in 1942 and 194j, as large stocks of soybeans, including stocks on farms
not needed for seed, remain from the 1941 crop, and 9 or 10 million acres of
the 1942 crop may be harvested for beans. However, the need for soybega oil
in the manufacture of edible products and for industrial purposes other than
protective coatings will also be excen~tionally great in 1942 and 194), so
that its use in the drying industries may not be any greater than in 1941 and
may be reduced.

Reported factory consumption of fish oils in the drying industries in
1941 was about 55 million pounds. Fishing activity in 1942 may be diminished
by military regulations and scarcity of boats and labor. Consumption in the
drying industries, however, wlill be determined by the relative needs in
various uses as well as by the total supply.

Prices of Drying Oils at Hrigh Levels in 1942

Prices of fats and oils used in the drying industries rose about 20
percent during 1941. Ilost of the rise occurred during the first half of the
year, when imports were restricted by a shortage of shipping space. Despite
the greatly increased demand for drying oils in 1941, prices of these oils
did not rise so sharply as prices of most of the other fats and oils, partly
because prices of tung oil and its substitutes had already risen in 1939 and
1940 as imports of" tung oil diminished, but chiefly because large supplies of
flaxseed in Argentina exercised a restraining effect. Ceilings were imposed
on prices of all fats and oils in December 1941, shortly after the outbreak
of war in the Pacific area. The ceiling on linseed oil prices was removed
on February 4, however, and has not been reimposed because flaxseed prices
have remained under 110 percent of parity.

Price supports have become an important factor in the flaxseed market,
and thus indirectly in the market for linseed oil. Early in March it was
announced that in order to encourage production of flaxseed in Canada the
Cana~dian W~heat Board would buy all of the flaxseed delivered by Canadian
farmers from the 1942 crop at fixed prices based on a price of $2.25 per
bushel in store at Fort I;illiam. This announcement, and the fact that a few
days earlier the W~heat Board had taken control of existing supplies in Canada
was probably a contributing factor to the rise in the price of flaxseed in h
United States during March from around $2,35 per bushel at Minneapolie to a








- 11 -


peak of more than $2.70. Early in April, the Argentine Grain Board advanced
its price for flaxseed for export, f.o.b. Buenos Aires, by 15-1/8 cents per
bushel. Tins action, together with increases in shipping costs, have brought
the total cost, including duty, of Argentine flaxseed delivered by boat in
New York to~more than $2.60 per bushel und somewhat higher level if delivered
by .rail from Gulf ports. On April 13, the United States Department of
Agriculture 'announced that the Commodity Credit Corporation would advance
;loans to farmers on their 1942 crop of flaxseed at prices based on $2.40 per
bushel for No. 1 flaxseed at Minnexpolis, with grade anld location differentials.
Flaxseed prices toward the middle oflhgerease between 82.50 and $2.55 per bushel
at Mcinneapolis.

The price of linseed oil in drums at New York averaged 14.2 cents per
pound in April, compared with 10.8 cents per pound in December 1941 and 9.d
cendts per pound in January 1941. A strong demand for available supplies of
drying oils other than linseed oil may be expected to keep prices of such oils
at ceiling levels during 1942. Price-supporting measures already announced
will tend to prevent the occurrence of any major decline in the price of flax-
seed and consequently in the price of linseed oil.





MAY 1942


- 12 -


Table 2.- Estimated total consumption of fats and oiled in the-
drying industries, United States, 1937-41

Item 1937 1938 1939 : 16 911

: 1,000 lb. 1,000 1-o. 1,000 lb. 1,000 lb.~ 1,000 lb.

Linseed oil 2} ..........: 570,7ss 479,813 548,876 575.524 784.329
Tung oil 2/ .......:143,470 sy,4o5 103,051 66,921 69,780
Perilla oil 2} ..........: 38,776 41,Lg7 50,960 19,023 8,10
Fish oil ................: 446.310 29.781 42.570 45,967 55,14
Soybean oil .............: 17,157 18,847 28,220 37,164 49,515
Castor oil .......: 7,722 6,043 11,844 24,857 46,295
Oiticica oil ......: 3,631 5.301 18,p67 .15.537 36,578
Coconut oil .............: 1,126 424 710 1,263 920
Cottonseed oil .....: 210 352 23217 349
Rape oil ................: 139 134 79 88 103
Corn oil ................: 89 118 155 174 8s3
Palm oil ........:3 10 6 4 1
Olive oil, inedible .....: 6 14 7 4
Other vegetable oil i/ ..: 300 300 00300 300
Grease ..................: 659 565 97504 622
Tallowr, inedible ........: 158 121 102 155 375
Marine mamal oil ........: 18 33 40 55 36
NTeatsfoot oil *16 11 28 28 37
Tallow, edible ..........: 2 21 1 4
lard ..........:3 22 9 13
01eo oil ................: 2 -----
01eostearine ............: ---26--

Total ..............: 82,0 7.5 0.6 8,0 ,03788

Compiled from reports of the Bureau of the Census, except as otherwise noted.
Data for earlier years beginning 1931 are given in The Fats and Oils Situation
for May 1939.
1/Preliminary.
gjSince drying oils are used directly as well as in factory consumption, these
figures represent totPl domestic disappearance excluding small quantities reported
by the Bureau of the Census as used in soap, shortening, and miscellaneous. produchi
Iii Reported "other vegetable oils,"' except 300,000 pounds, assumed to be oiticica
oil.








EY08-6) 13 -.

Table 3.- Estimated consumption of fats and oils in paints and
varnishes, United. States, 1937-41


Item 1937 1938 1939 : 16 91I


1000 lb

482,295
133.510
28,971
27,277
16,14)
7,192
3,605
1,124
43




300
150
151
11
15

--- o~


Linsleed oil 2/ ..........:
bi~g oil 2 .............:
''eveilla oil 2) ..........:
;Pish oil ................:
Soybjean oil .............:
Castor oil ..............:
Oiticica oil ............:
Coconut oil .............:
Cottoneeed oil ..........:
Rape oil ................:
Corn oil ................:
Palm oil ................:
Olive oil, inedible .....:
,Other vegetable oil Il...:
'Grease ..................:
Tallow, inedible ........:
Marihie mammal oil .......:
NeatStoot eoil ,...........:
01eo oil ................:


1 0_00 To. 1,000 lb.


1,0700 lb.

474,154
63.129
15.528
30,787
29,828
24.368
14,811
1,261

88
174

7
300
94
141
48


1,000 lb.


407,616
81,190
32.773
15,679
15.183
5.792
5,080
422
184
131
118
1

300
144
117
28
9
2


463,327
97,183
38.287
24,981
21,720
11,439
17.525
707
51
79
155
1
14
300
by
97


650.546
64,924
6.959
40,653
41,594
44,240
35.766
919
196
103
sks

4

150
364
26
37


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


564.773 675.973 654,813 887,629


Compiled from reports of the Bureau of the Census, except as otherwise noted.
If Preliminary.
2} Since linseed, tung, and perilla oils are used directly as well as in factory
consumption, these figures represent total domestic iFisappeara~nce excluding
quantities reported by the Bureau of the Census as factory consumption in linole-
um, oilcloth, and printing ink, and small quantities used in soap, shortening,
and miscellaneous products.
Z/ Reported L'other vegetable oils," except 300,000 pounds, assumed to be
citideca oil.




MAY 19L2 1 -

Table 4.- Factory consumption of fats and oils in the mlanufacture-of
linoleum and oilcloth, United States, 1337-41

Item 1937 1934 1939 14 911
4 ,000Y lb. 1,000 Lb. 1 000 lb. 1,000 lb. 1 ,000 lb.

Lineeed oil ........: 68,151 55.395 6a,023 Sk, 262. 110,236
Fish oil ...........: 16.755 13,848 17.385 15,ool 14,682
Perilla oil ........: 8,053 6,9$2 10.758 2. 387 340
Tung oil ...........: 7,198 4,131 3,763 2,064 1,896
Soybean oil ........: 934 3,605 6,438 7,254 7.666
Castor oil .........: 270 51 ad 137 1.295
Rape oil ...........: --- 2-- ---
01iccaol / ..:9 115 1.264 706 721
Corn oil ...........: --- --- --- 1

Grease .............: --- 1 1 ---
Tallow, inedible ,...: -- 1 2 1
Total~ ...........: 101,_]80 8Lh,100 10T7,21 111.81) 13 ,800
Compiled from reports of the Bureau of the Census.
If Preliminary.
21 Reported as "other vegetable oils''; assumed to be oitleica oil.

Table 5.- Factory consumption of fats and oils in the manufacture of
printing inks, United States, 1937-41

Item 1937 1938 1939 16 91I
: 1,00 l .1,000, lb. 1,00 lb. 1,000 lb. 1 000 lb.

Linseed oil ........: 20,342 16,804 17.526 17,103 23.547
Tung oil ...........: 2, 762 2,084 2,105 1.728 2,96
Perilla oil ........: 1.752 1.752 1,915 1.108 831
Fish oil ...........: 298 254 204 179 179
Cast or oil ,.........: 260 200 317 352 760
Cottonseed oil .....: 167 168 192 152 153
Soybean oil ........: so 59 62 82 255
palm oil ...........: 3 9 5 2 1
Rape oil ...........: 1 1 -----
Coconut oil ........: 2 2 3 2 1
Oitieica oil 2/ ....: 17 106 78 20 89
Corn oil ...........: -- ----S

Grease ..,..... 509 420 449 410 472
Marine mammal oil ..: T 5 4 7 lo
Tallow, inedible ...: 7 4 12 10
Tallow, edible .....: 2 2 1 1 4
lard ...............: 3 2 2 9 13
h'eatsfoot oil ......: 1 2 4-- -
01eostearine .......: --- --- 2 6--
STotal ............: 24,213 21,884 22,877 21.178 29.199
Compiled from reports of the Bureau of the Census.
If preliminary.
g/Reported as "other vegetable oils": assumed to be oiticica oil.





708uIS-63 15 -

Tablle 6.- Percent~age contribution of principal items to the total
eight of fate and oils used in the drying industries, United
States, 1932-%1

Total drying industries


Item 13 9)
.93 :1
-: Pot. Pct.

;Liseed oil ........: 74.6 69.0
ISung oil *...1.. 15.7 1&8-8
Perilla ........,....: 2. .6
Fish oil ...........: 4.1 4.1
Soybean oil ........: 2,6 2.6
Castor oil .........: .3 5
Oiticica oil .......: --- --
Other fats and oils : .5 .1


1941935 :13 1937 :1393 11939 :9o(9
Pet. Pet. Pet. Pct. Pet. Pot. Pet. Pet.


69.4 65-7 61.7
1g.9 17.5 14.9
4.0 8.5 13.6
4.2 4.6 5.1
2.7 2.5 2.3
.5 -5 .6
--- ---.6
.7 .7 1.6


68.9 71.5 68.1
17.3 13.012
4.7 6.2 6.3
5.4 4.4 5.3
2.1 2.8 3.5
.9 .9 1.5
.4 .8 2.'3
.3 .4 .2


73-1 74.4
8.5 6.6
2.4 .8
5-8 5.3
4.7 4.7
3.2 4.4
2.0 3.5
.3 .3


Total ........~....:100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


Paint and vaarniqlh
Linseed oil ........: 76.? 72.0 72.0 672 65.3 6.8, 72.2 68.5
Tung oill...........: 16.3 19.j 19.2 18.4 16.2 19014.4 14.4
Perilla oil ........: 2.3 4.1 }.7 d.2 17.1 4.1 5.8 5-7
Fish oil ...........: 1.9 1.9 2.3 3.0 j.6 j.9 2.d j.7
Soybean oil ........: 1.8 1.g 2.1 2.1 2.2 2 2.7 )2
Castor oil .........: .4 .4 .5 .6 .6 1.0 1.0 1.7
Oiticica oil .......: --- --- --- --- -4 -5 .9 2.6
Other fats and oils : .4.4 _.2 .5 .5 .4 .2 .2


72.4 73-3
9.6 7.3
2-4 -8
4.7 4.6
4.6 4.7
3.7 5.0
2.3 4.0
.) .3


Total ............:100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Linoleum~ and oil'cloth

Lineeed oil ........* =6.3 47.2 47.3 51-7 49.4 6;7.2 65.9 63-1 75.4 so.6
Fish oil ...........: 20.8 18919.6 17.2 16.0 16.5 16.5 1. 361.
Perilla oil ........: 2.9 8.3 6 11.3 17.5 7.3 8.3 10.0 2.1 .
Tung oil ...........: 12.7 16819.0 12.9 7.0. 7.1 4.9 3.5 1.8 1.4
Soybean oil ........: 7.1 8.1 4.2 6.0 2.8 .9 4.3 6.0 6.5 5.6
Other fats and! oils : .2 .7 3. .3 .4. .1 1.-! .8 1.5

Total ............:100.0 100.0 100.0 100.0 1030.0 100.0 100.0 100.0 100.0 100.0

: Printing inks


Linseed oil .....*...: 87.0 S1.0 81.1 79.3 74.1
Tun~g oil ...........: 6.8 11.3 10.7 11.2 11.5
Perills oil ........: 1.4 3.1 3.7 4.6 9.6
Other fats and oils : 4.8 4.5 4.9 4.8


77.6. 76.8 76.6 80.8 80.3
10.5 3.5 9.2 8.2 10.1
6.7 8.1 8.L 5.2 2.8
_5.2 5.6 5.8 5.8 6.8


Total ............:100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Computed from data shownrf in preceding tables an d f~-~rom simil~-dar da~-7lta ivn h
Fa~ts and Oils Situation for M~ay 1939.
Zt/ Preliminary.






MAY 1942


- 16 -


Table 7,- Prices of spoecified oil-bearing materials,
April 19 0 an~d 1941, Febrlaryl-April 1942


:~ Apr_, : 1962
Item Unit
: : 1.940 : 19 1l : Feb~, : Mar, :Ar


Castor beans, Brazilian,
shipment, C,&f., New Yorke Long ton:
Cottonseed, UT.S. farm price Short ton:
Flaxseed, No. 1,
Minn~eapolis ,,,,..........: B3u, a
Flaxseed, U.S. farm price .: :
Peanuts (for nuts and oil),: I
U.S. farm price ,.,,..,,,,, 100 lb, I
Peanuts for oil, delivered :
designated agencies ,,,,,,3 n n :
Soybeans, No, 2 Yellow, :
Chicagoa ,.......,,,,,,,,,,S Bu, 3
Soybeans, U.S. farm price ,: :


Dollars Dollars


Dollars Dollars Dollars


25,588~ 95,04


96.50
43.90


pp.25
W,18


70.00
27,18

2.11
1,92

3,53


2.59 2.62
2,37 2,41


1,93
1,73


2.33
2,08


3,62 5.44 6.03 6.25

-- ,08 4.05 4,1o

1,20 1.95 1.92 1.83
1,07 1,78 1,79 1,76


1.09
1.00


Z 3
Compiled from Cil, Paint and Drug Reporter, Dai'ly Trade Bulletin (Chicag~o),
Daily Markcet Record (M~inneapolis), and reports of the Bureau of Agricultural
Economics,

Table 8E,LI price per ton of specified oilse,7d meals, April 1940
end 1941, Febnrary-April 1942

Itm1 :Ar 19412
:. 1940. : ~194 Feb, : ar :pr
i Dollars Dollars Dollars Dollars Dollars


Copra meal, Los Angeles ....,,.,:
Cottonseed meal, 41 percent
protein, Mempihis ...,,,...,,,,,:
Cottonsood meal, 41 percent
protein, Chicao .,,.......,,,,.:
Linsood meal., 34 percent:
protein, Kinneapoliss .,a.,,,,,:
Linscca meal, 32 porcont:
protein, New York ,,.,.,,,.,...,:
Pcanut meal, 45 pecrdont protein,:
f*o,3, so:utheacstern Iills .,,.:
Soybea real7, 41 porcont:
praoein, Chica .p ,,,,,,,,,,,,,:


18.95 30,80 49.50

30.80 25.20 37.90

36.95 31.25 43.60

30,70 28.50 42.50

34. 00 24, 60 2/34. 50

30,85 24,20 45.70

29.65 27.50 46.45


51.10 50.00

37.oo 35.25

42.60 41,so

42.00 371.50

34,40 31.75

45.35 46.75

44,85 41,oo


Cormpile~d fr-om records of the Agricultural Marketing Administration.
B/ a~ggd, carlots.










































t;:' 1 ~ ~ ~ -~~~~-~~~~~~~- ~ ~ ~ ~ ~ -~-~~








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