The Fats and oils situation

FOS~45


EMBER 1940


A St,.97.45


-- ""i'N T IIS; ISSUE: PRODUCTION, TRADE, AND DISAPPEARANCE,
NU4QRY-SEPTEMBER, WITH COMPARISONS.
U.S. t-PUSIIW


PEI

POUNDS.
I MILLIONS 3
.1.600 .



1.200




800




403




0 -


ANUTS, FARMERS'-STOCK: PRODUCTION. PRICE,
AND CRUSHINGS, UNITED STATES. 1920-40


CENTS
PER
PouND




6




4




2




-0


1923 1926 1929 1932 1935 1938
YEAR BEGINNING SEPTEMBER
*FEAR BEGINI~lNG OCTOBER. PFA NUTS IN THE HULL 1920-84
DATA FOR 19419 ARE PR)ELIMINARY I PRODUCTION INDIGA TED SEPTEMBER I


NEG. 38633 BUREAU OF AGRICULTURAL ECONOMICS


ip. DEPARTMENT OF AGRICULTURE .


PRODUCTION OF PEANUTS lu 1940 15 INDICATED TO BE THE LARGEST
ON RECORb. BUt WITH AN EXPANSION IN THE PROGRAM FOR DIVERTING
PEANUTS T0 CRUSHING MILLS, AND WITH A RELATIVELY STRONG DEMAND FOR
PEANUT PRODUCTS, PRICES OF PEANUTS IN THE CURRENT SEASON ARE EX-
PECTED TO BE MAINTAINED NEAR THE COMPARATIVELY STABLE LEVEL OF THE
PAST 6 YEARS.


THE T UATION


B UREAU O F AG RI CULT U RAL ECONOMICS
UNITED STATES DEPARTMENT OF AGRICULTURE

~RE NOVi


.C


-rkLi;;;i





Item


FOS-45


* 2


Table 1.-Price per pound of spedi~fied fats and oils, and oil-bearing
materials, October 1938 and 1939, and August-October 1940


: Oct. :1940
:1938 :1939 : Aug.:Sept appy~


Fats and oils. :Cents Cents Cents Cen~ts it$~d
Butter, YZ-Ecore, chicago .........................: 25.5 28.4 27.0O 27.6 29,E i;
01eomargarine, dom. veg., Chicago .................: 15.8 15.0 14.8 14.5 1
Compounds (animal and veg. cooking fats), Chicago .: 10.0 9.7 9.0 8.8 ,
Lard, prime steam, tierces, Chicago ...............: 7.4 6.6 4.9 4.8 ,
Lard, refined, tubs, cartonss) Chicago 2/' .........: 8.5 8.0 6.1 6.5 B1S.'i
01eo oil, extra, tierces, Chicago .................: 9.4 10.0 7.0 7.0 f4
01eostearine, bbls., N. Y. ........................: 7.6 8.9 5.2 5.7 41
Corn oil, crude, tanks, f.O.b. mills ..............: 6.7 6.6 5.3 5.2 a4.14
Corn oil, refined, bble., Ni. Y'. ...................: 9.8 9.3 7.9I 7.874
Cottonseed oil, crude, tanks, f.O.b. S. E. mills ..: 6.3 5.8 4.8 4.8 .
Cottonseed oil, p.s.y., tank cars, N. Y. ..........: 7.6 6.8 5.6 5.6 5,
Peanut oil, crude, tanks, f.n.b. mills ............: 6.8 6.8 5.4 5.2 4,
Peanut oil, dom. refined, bbls., MI. Y. ............: 10.4 10.5 8.7 8.4 --8ci,#.'!
Soybean oil, crude, tank csrs, midwestern mills ...: 5.0 4.9 4.4 4.1 .
Soybean oil, refined, drums, N. Y. ................: 7.9 8.4 6.9 6.9 e*.9i

Babassu oil, tanks, N. Y. .........................: 6.3 7.0 5.9 5.8 g$d.8
Coconut oil, crude, thanks, f.o.b. Pacific Coaist 3/ : 5.9 6.8 5.3 5.'5 a
Coconut oil, edible, tanks, TN. Y'. .................: 8.2 --- 6.8 6.8 4
Olive oil, edible, drums, Fr. Y. ...................: 25.1 30.0 31.6 34.8 30,$~:.
Olive-oil foots, prime, drums, Nd. Y. ..............: 7.1 10.0 8.7 8.9 945
Palm oil, Niger, crude, drums, P'. Y. 3/ ...........: 6.6 --- 6.8 6.5
Palm oil, Sumatra, bulk, N. 3/ ...,..............: 5.8 --- 5.2 5.2 Undii
Rape oil, refined, bbls., N. Y1. ...................:4/1=D.5913.5 15.0 15.0 14,$e
Sesame oil, refined, drums, IJ. Y. .................: 10.5 --- 16.0 --- w
TIeaseed oil, crude, drums, N. Y. ..................: 7.4 13.5 12.5 12.8 16~t.

Tallow, inedible, Chicago .........................: 5.0 5.6 3.2 3.5 $,ag
Grease, A white, Chicago ..........................: ,5.2 5.8 3.2 3.6 87
Menhaden oil, crude tanks, f.o.b. Baltimore ......: 4.0 4.6 4.7 -- ws
Sardine oil, crude, tanks, Pacific Coast ..........: 3.7 4.6 41.9 -- -w
Whasle oil, refined, bleached winter, drus, N. Y. .: 8.2 4/9.5 9.5 9.5 C4,$

Linseed oil, raw, tank cars, PIinne-apolis ..........: 8.5 10.0 7.9 7.7 7,.5i'
Linseed oil, raw, drums, earlots, N. Y. ...........: 8.8 10.2 8.8 8.5 4
Perilla oil, drums, N. Y. ................... ......:4/10.04/14.5 17.7 17.6 18.1
Oiticica oil, drums, N. Y. ................... .....: 11.0- 21.0 18.0 19.0 19.0
Tun~rg oil, drums, M. Y'. ............................: 13.8 28.2 25.8 28.3 26.9 .
Castor oil, dehydrated, druns, caurlots, N. Y. .....: --- 15.6 14.0 13.6 1.
Castor oil, No. 3, bbls., N. Y. ...................: 9.2 10.8 11.2 10.8 98
Cod-liver oil, med.U.S.P. bbls., N.Y. (dol. per bbl.) 26.5 424.0 67.5 72.5 72.5
Gil-bearing materials:
Copra, bags, f-oTb. Pacificc Coast ..ei........,......: 1.9 2.3 1.4 1.41.
Cottonseed, Dallas (&:1. per ton) .....,.............: 22.4 25.0 19.5 22.2 24.1
Flaxseed, No. 1, Minneapolis (per bu.) ..........t184.0 186.0 150.0 148.0 147.0
Peanut, shelled, Runners No. 1, f.o.b. E. mills : 4.9 5.4 4.7 4.9 4
Soybeans, No. 2 Yellowr Chicago (per bu.) e........r 74.0 87.0 81.0 81.0 83.0)
Compiled from O~~~~il,~ Pait nd Drug Repor ter, The Nati~onal Provisioner Cca o Dai
Trade Bulletin, Minneaipolis Daily Market Record, and reports. of the Agricul~ural
keting Service and Bureau of Labor Statistics. Prices quoted include excise taxes'
and duties where applicable. 1. Preliminar~y. 2/ Begnn~ing~ July 1,o40 reported in
1-pounrd care--~wln../ Three-cewt Iarcessing taradded to price as originally quote









T HE FAT iS AN 0n~r IL 5 S IT :A T I 0 Na


Su~mmar.Y

Present indications are that hop slau hter will be redcced materic11y

in the first ouarter of 1qhl; hence, lard~ nrices mayr bor fa~irlyr substantially

~a~ins in the late winter .nd. snriny months next yea~r. Lar-2 prices in Oc-to-

tler, under the infl~uecie of a record !oc clughte-rr, declinedl to the lowesrrt

level since archrh 19'7.

Except for buttFer, orices of domesrtic fnat a-1ndils here 23-je par-

cent lower in October this ycar then last. Pricis of inorted fats and

oils have shown mixrd trends durinE the~ naet 12 P.onTths, '.ithl Drices for

those oils which are re'adilyr evail-ablel fr hi~nnit to the Ubnited Statns

tending to decline, buit ith prices of oils not read-ily accr`ssiblr br'cau3

of war conditions bringf .m~ntintain at hi.Th 1:Vqls., or risEn-cing.

Domestic oilseeds, as aoll as fats andr oils, ncre lower n7ricedl in

October this year than la~st. But exsert for flrxwed, toe rice reductions

have been noderate. F!.nxeeod ri~ces hlaver toon c-;iknted rot onlyv because of

a. largo ionstic cro:p this yeanr, bult alco 1F 7nrisnlt of the blockadne of

continental Europeanl ma.rkerts. It is nrljbable thrt there w~ill b~e a largo

surplus of flaxsroed in Ar~catina a?.d Ururmy:. whern the nec:- Cron~S are hcarviested

in those countries this 8'inter.

Producti'7n of lard, tailor, grreases, Pnd sort1-con 7il, Aq we~ll as

linsced oil from domestic fl xsmed, rqs substantilly larger during the first

9 months of 1940 th~n r. vcr~r earliler. Total nrnductio~n of frts und oils from

domestic mrteria~ls for the three-iurrtler r eriod was7 n10?ut 8 Dercent in ex-

cess of that in the correspondi~ng norid of 1930, :'a1!ndas of record size.

N~et imports of fats, oils, andl oil--bearing mnterials (in terms nf cru~de oil)







FOS-L45 k

wrere 9 percent less in the 9-month period this year than last. The com-

bined factory and warehouse stocks of primary fats and oils on September 30

were about 12 percent larger than a year earlier.

Total consumption of primary fats and oils from January through

September this year was nearly eaual to the record consumption in the cor-

responding period of 1939., Consumption of food and soap fats and oils wasi;

increased, but con~sum!tion of drying oils and of fishrliver oils wsas re-

inced'. The reduction in utilization of drying oils aonarently was the r~ea

sult of a fairly large acc-umrulation of stocks of mixed points and varni~sh~es

during 1939; mhile the use of fisb-liver oils res restricted because of.

difficulties in 7btainingo surlplies of such oils from foreign sources.

REVIEW OF RECENT DE~VE'LOPMENTST

Lard prices decline further with
large hog slau~ghter

Prices of most iminian fats rera 3-7 percent higher in October than;
in September, but lazrd prices declined. The price of prime steam lard at
Chicago averaged only 4.65 cents per a und for the month, 4 percent below
the September average and the lo-est monthly average since March 19) .
Lard porduction, as indicated b: the number of hores slaughtered, was much
above average in October.

Slaughter sunolies~ of hogs hpre been excerntionally large in recent
wreeks. DesTnite a rteducti~on of 8 percent in the size of the string pig crop
this year compared with last, the number of hogs slaughtered under Federal
inspection in Octobor was about 26 percent larger than a year earlier, and.
w~as the largest October slaughter on record. The 1940 spring Dig crop
apparently is being marketed earlier than usual. Hence there may be a
greater than usual seasonal reduction in hog supplies in thl second auart~er
(Jan~uary-March)h of the current byg-marketing your. Should this be the
case, it is possible that lard prices nill aIdvance fairly sharply during
the late winter an~d snringE, particularly as the domestic demand for edible.
fats is expected to sher' further mn~rovement in the next several months.

Prices of domestic vegetable oils also declined' in October, with
peanut oil, influenced by the large dranut crop this year, showing the most
pronounced drop. In contrast, prices of some of the imported vegetable oils,
notably teaseed, olive, perilla, and tune, averaged higher in October than a
month earlier. Prices of coconut ail anld palm oil, foreign supplies of which
Are readily available to the United States, shor:ed little change for the
month. '





FOS-45


Prices of most fats mate-ially
lower than a year ago

Except for butter, prices of domestic fats and oils w;ere materially
lowe~r in October this year thian last. The average wholesale price of butter at
Chicago was up about 4 percent, reflecting a somewhat smaller supply and inr-
proved demand conditions. Sut prices of other animal fats were dow~n 30-35 per-
cent from a year earlier, and prices of domestic vegetable oils were 20-30 per-
cent lower.

.Changes In prices of the imported oils have shown mixed. trends. Coconut,
babassu, and palm oils showr material price reductions for the past year.
Castor, oiticica, and tung oil prices were moderatelyl reduced, although prices
of tung a~nd oiticica oils in Oetober were still at relatively high levels. On
the other hand, prices of rape and tezssed oils weore 10-155 percent higher in
October this year than last, perilla oil was up 25 percent, edible olive oil
was nearly 30 percent h~igher, and cod-liver oil wars up? about 65 percent. The
differences in price trends mpay be attribu~ted leargely to tM-c varying degrees of
availability of th~e foreign oils under conditions imposed b:y war in Europe and
East Asia, and, in the case of perilla oil, to the short supply of perilla s -d
in Manchuria as a result of unusually small cropei in 1939 and 1940.

Cottonseed prices advance,
peanut prices rodceec

The average price re--cived byr farmers for cottonsced in mid-October, at
5921.55 per ton, wa-s about 6 percent higher th~an a month oc.rlier, bult was 6 p~er-
cent below the average for mid-October 193C9. Cotton~siCd prices at Dallas
advanced fairlyr steoadil: during the month, rand at theo month's and wonr about $1
higher than at the mid-nonth. As indicated in -earlier issues of this report,
cottonscod prices ar o epcted to arcrago slightly loocr this sonson than last,
despite a gonoral impraovenon~t In do7me.nd conditions. The supylyr of cottonsood
is larger than a year Lecrlier, an~d domestic lard supplies, w',th the loss of
important ex~port outlets, probabl: will continue to be unusutllyr large for
several months to comre, although possibly not so large nrext spring as at the
same time in 1"40.

Soybean :.nd flaxscod prices sh~owed little ch-nge. from Septomber to
October. SoyboaLn prices in Gcoabor rtwo moderately lovec than a yeacr earlier.
Flaxsood prices, however, undor the influence of the- large domestic crop this
your end the prospective flaxsoed surplus in Argontilna end Uruguayv vhen the
now crops are h:orvested this wrintor, woro downm about 20) percent from last your,
It seems likely thaot flexsood prices willl continued ril-ativoly, lorr during the
present markoctirg season, un~less continental European markets are rooponed to
trade, thus providing an outlet for South AmericaLn sood.

The average pr~icc r-ccived b:I farmers for pean~uts in mid-October, at
3.26 cents per pound, wras 4 percent lolror than a month earlier arnd 3 percent
lower than a year curlier. Pacnut prices so far in the prcsont marketing soa
son have boen maintarined at lovolr not much- belo~.those of last year, despite
the record-large pounut harvest. Improved damendli for peanut products and an
expansion in the program for diverting pounuts to crushing mills have been the






- 5 -


FOjS -45


fractors mainly, responsibl-, for thle com~p-arative strengthk in pouanut prices. Aec-
cording '-o re~ports r-:oived byr the~ Surplus Manrketing Arlministrration, nearly 546i
million :jara.ds of pe.nuts, repr3eisnt~ing more than~ a third of the total crop,
had been purch-sod iroy coopeirrativss In t..,e southeastern -Ind southwrestern. areas
under th: diversionn 31roE1ra b:, ear;.'ly ievanibor. A substanltial proportion of the-
pur-chases h-s .lr,-c.d; boo~n d'verted to crushirg mill.s.

PaanLTut crOp crtimeL.fto revised uIPonrdL,
solybs-n -stin.:.ces to uced

Thi: y::-re: production: of pcom~uts for picking and thrcshing, on the
basis3 of co.dition;s ;:over3Tbo" 1, is :,tim3.ted at 1,j74 million pounds, wrhich is j
r.bout : poc:c-:t _:bove thes etinate of :. mor.th a-rlier, slnd is 33 pcrcont aboved
last ;rc r'- cropc. Should pick~ing .ndc thra~shing come- up to present oxpectationyji
tle, 1"1'0 Produ!ctionr :i~ould oxc-ocd tl~ .0 .nevious record production in 1938 by smrotl
than: 20l prc'cnt. The-: actinateid production in the Vlirg;ini,"-Ca~rolina. ara is .
enyi 5 percent lairge. th~is :,ear tih_,n last. But production in the southeastern
alrear is up about iO 7Decent, and prolductionr in the southwe-~stern area shows a
gr.in of 3;0 percent.

The. production 3f so:,-_!ns harver'sted r:s boun:Ts is now estimated at 79J.2
millie~n busto.ls coma~cre Trtit. the, askline.t? if 81.5, million buishels a month i
carlier :-.nd Ins-t -or;-rl ra~c:ds praruction cf 87,4 million bushels. The dif- !I
fercr.30 ':ctwoo~n cDroductionn tli cr a -:nd l,-st is sonowha!~t loss thanl total ex- 1!
ports lo ot sea-sol\, :.tich moulcnlt ed to_ nerxrly 11 million bushels. Honeo, wi~ith a i
sh-;rp r:ductjion i:- ;;::orts i:. prros act, th-e qan~t~ity, o-f saybJoar.s available for
domestic use, t!is S.: .so::~ should r~laur-. ;:r e7xcoed thel quanlrtityl used last season .I

PRI~ODUCT'1IIll OF FiT~S K!D rJIL' PEACHES TEW H~IGI' ITI 1940,
C O71;5'.;FT I OH AIX "I' U .Ll~CEANGD

Prrdjuctionn of 10.rdJ,cllowu, :..nd
grea.-e.s Ciharpl; ~ in~craS39d

Tentarti-.- estimatess f-r- 1940~ rs -. whojler ildicate that production of fat~s
and oils frrorr:de:~ nteti notcrl~s mylr to~tail more trhanr 8,800O million pounds edL- :
pe~rrd ith the per-ious record totral of abu ,0 mlinponsi 99
Frr:du.cti n fro~n i;--ro;rted i-iatrials: in 1940 is not oxpected to to greatly dif-:
foron-t flro! the 72Z7 rdlion pounds~- produl.ced in 1939. During the first 9 months
of 1940C, nT:'rroxi-~rcrol,- 863 mlllion. prunjds Cf cruldo. ilE woroC produced from ime
pactool vog tc'ble il-too~lnringntoridc compalred w.ith 573 million pounds in the
corrospjndi ig period of 1:j3c'.

Production :f' f-s an Ir oils ,1-. da~ncstic catericals in the.r first 9
mon~jths of 19J40j'wo.s~ rfoct 8 percent la.rger than in the corre~spo;nding period of
1921;. Ikarly- all of thi gain; in co;tput of donatic fats and oils in the first
9c no;nths thiis Zycr r-curre~d In lard, inedible tallour and greases,,sayboan oil,
an~d linszod oil. F_ etar; pr duction cP lad, ars reportedly by the Bur.0au of the
Cons5us, wans 24 pcrcen t larger ir. th? 18-:onth epried this ycar than Inst, pro-
duction! of inedibole tallown and~ graeS~ wanS up 27 perconlt; and the output of
sj;ybean oil was~ inicre.so~d 26 porcont. Froductiojn of t-,llowr, greases, and say-
be~an oil wans at record 1crols.






POS-45


- 7 -


The total factory output of 11:.aood oil franl January through Septomber
.this yoctr vus reported at 414 million pounds, an increase of only 16 million
pounds evor the~ correspond1inG peri:d of 1933. But if the oil equivalent o~f
imported rlxsecod is de~ducted; frcn total production! (on the basis of the as-
sumptioJn that all -uch sood is cru.sh3d), the apparent out-put of linscod oil
front domestic flaxcood would, tjotl 243 nillical poJundls cormpared with 142 million
pounds a your earlier. Th-us it appe-ars th~at the oraductionn of lizzood oil from
'donostic flaxsoodf was about 71 percent greater in the first 9 months this y-car
than last.

Partl; offsetting these Fain~s in output Ire reduction= in the output of
cottonsood oil (130 million pounis)l, fish oils (52 million po~uids), and pounut
oil (40 million pour.ds). Othor chanrges anong thz ('onistic it,:1s Iore~ compara-
tively enall, and wcroc, to a largo extent, offsetting.

Of the oils produced fronl in~ported materials, notable chanlges front the
Jan-uaryr-Soptomber period ir. 1939 to the co~rrespondi~ng period in 1940 included
gains in output of 5"6 million pounds (27 porcont) for c-rconut cil, and 21
million pounds (41 porcon~t) for castor oil, the industrial clandln for which has
increased rlrntcriclly. during thG pat yearol, par1t~ly as a result of the high
prices provoiling for tung and iiticica oils. Moro than offsetting these in-
oreases in factory production, hcoover, us~E a reduIction of 2pproxiMately 85
million pounds for lin~scad oil prod~uced! fran imported flaxscod.

Imports reduced, exports increased

The conbined imports of fats, I.ils, and oil-bnaring natorials, in torns
of crudo oil, totaled appIroxiratoly 1,278 million pocur.ds for the first 9 months
of 1940, 67 million pounds (5 percorct) loss than in. the corresponding period
of 1939. Itons shoring substantial rediuctiors in imports included flaxscod,
fish-liver oils, palm oil, porilla seed and. oil, cottonsood oil, and corn oil.
Imports of babassu iluts an~d olive cil also deaclina.~2 On the other hand, ma-
torial gains wrero rocordedl far imports of coprn andi coconut oil, tung oil, mad
custor bouns.

Abur.dar~t supplies and rol:atively low1 prices for d.;o.stically-produced
oilseeds and~c fats wocre nlainly r:sponsible1 for the reductions in imports of
flaxsood, paln oil, and co~ttonsced oil. Irmports of fish-livor oils, corn oil,
and olive oil woro inpodcc by war in Europe, wrchile the marked decline in im-
ports of perilla sood and oil was largely the result of a short crop of perille
seed in Manrchurria in 1939.

The reduction of 67 million pounds in imports for the 9-n~onths period
was accompanied by an increase in exports of 30 million pound~s. Hence not iru-
ports of fats, oils, 3lnd oil-boaring no~torials twor about 97 million pounds
smaller from January through Soptonmbor this ycerr than last.

Ex~por~ts undoubtedly would have boon larger than? they we~re if it had not
been for the wanr in Euro~pe. hiost of the European Continoct is now cut off fror
knerican troda. To conserve dollar oxchango for the purchase of armanocnts and
other essential supplies, moreover, the Unlited Kingdomn has cu~rtailod its pur-
abasaos.of such ~items as lard in this country. Lard exports to Cuba and other






FOS-45


- 8


Latin Acmerican 'destinations, ,s wo11l as shiptsocnts to United States territoring I
were sonel-aheflt larger in the first 9 n~onths of 1940 th~ac in 1939. But exports
to Europe, particularly to the United K'ingdomn, woro substantia~lly reducede
Total exports andl sh~ipments of lard for the 9-mo~nthr. period, in consequenow~~?l.
were about 43 rdllio- pounds (18 percent) smaller this yer~~ than last. -The
reduction in lard exports, hor-evor, wras norc than offset by inorcased exped~i~~lllj; 1
(including~ re-exports) of coconut oil and CG97ty soyrbean oil and soybounsi
pubn oil, cojttonlsoo~d oil, and sacral other itons showi-ng: niarr gains.

Stjck~s of primary fats and oils
increasedl in perst yo urB

Ccmbined factory andr war-house sto~cks of the important primary fats mag"'j....
oils on Secptember 30, 1940, t ot aledt capr oxiat oly: 2,196 milli on pounds, crub~l~i::i;
basis, about 3 percent less than SUZFh stck's cn Januaury 1 but apprno~xiate~ ~j~lyt@
porcon~t nore than the combined stocks on .h.and a year ourlier. Major incr~ceagag.i:i 1
in stocks from Septonlbor 30, 1930 t3 Se-ptorbo3r 30l, 1940 took place in lardy
inedible tculls, greases, pal:. oil, tu~ng oil, andc scyboan oil. Stocks of ll
cottonsood oil, narino animal1 oils, and~ butter, on the other hand, were sibwj
stantially produced during this pe~riod. Of particularr sign-ifica?ce, in view 00'.;
the possibility that future supplies nay; bc limited! as a result of wanrs in
Europc and Asic., veroe incr~osos of 23 rd11io~n and 12 rllllion pounds respecti$v@:
ly in steeks of tung oil an~d oliveo oil during thoe 12-monrths pecriods and arji~' row
duction of 12 rallion pjoundls in stocks of fish-liver ,ils.

Consumption of food and soap fats in~creasedi,
use of dlrying aznd fish-liver oils reduced

The total rlis-ppe~arsnce of prine-ry fats and oils, excluding fare butted:
and lard, aroauded to a;.proxina1tely 6,343~' rdillion pounds in the first 9 nee ha;
of 1940 conpiarod wdith 6,350 rillion pounds a Your earlier. DiscL~appr~ora of
food andl soap fats =cnd oils as a wh~~ol vrus slightly larger than a year emel~ig@r
but d~isappooran~ce of th7e drying~ oils and theC fish-liver oils was srdllor-

Am~ong the foodI an~ soup fats, substantial gains in consumption were ?qq
corded for lard, tallowr, greases, 3;nd sayboan~u oil, v.'hich more than offset r~i:'
duotions in thle consumption of paln, cottonseed, fish t.nd whale, peanut, 01974kit
coconut, anld pain-kornl-3 oils.

The use of lin~seed tJnd cnstor oils in the dr~inzg industries was in-
ereas ed. But the gailns in th~is fielld .-oro more than offset by reductions in 'l
the use of tung, pcrilla, er.~ citicics CilS Co Dlestic snlcs Of pain~ts and
varnishes are reported to be substantially hihe)-r this year than Inst, while
exports for the first .3 months thsya ee bu h m a tecr
responding pecriodl a yearr earlier. Th-e not reduction in the use of the p~iraimary
drying oils appears to ].~-co been due to a1 accuraulationl of stocks of mixed
paints and varnish;es during 1939, which is n-ws ortzringr consumpitive channels.

Disa~ppe1arace of fish-liver oii$ totaled only 28 million pounds From
January through Septombecr this year compnared? with 52 nillion pounds in the oor~
responding period a yeoar ago. The proncurced? de~clino in imports of such oils
resulting front the war in Europe was mainly responsible for the sharp drop in
consumpti on.





FOS-45


-9 -


Table 2.- Production of specified fats and oils in the United States from
domestic and imported materials, 1938 and 1939, January-September 1939 and 1940
: Year :January-September 1/
Itm: 1988 : 1939 1/ 13 : 1940
: 1,000 lb. 1,000 lb. 1,000 lb. 1,000 lb.
Animal fats and oils -
SButter : Fa~cto~ry .................: 1,786,172 1,757,395 1,400O,415 1,419,585
Farm ....................: 500,055 486,015 2/ 2/
Total butter .................: 2,286,227i 2,243j,410
Grease, wsool ................. ...: 5, 324 7,192 4,967 6,354
Lard: Federally inspected 3/ ....: 1,0374,193 1,272,029 4/ 976,308 4/ 1,212,181
Other .....................: 674,033 720,3e8 --- ---
Total lard ,'/ ................: 1,708,226 1,992,417 --- ---
Neatsfoot oil .,...................:- 4,120 5013,682 2,908
01eo oil .........................: 88,346 75,860 55,324 50,276
01eo stock (exports) .........,.... 2,874 4,8E4 2,411 945
Stearine, animal, editle .........: 46,137 37,674 27,869 26,615
Tallow, edible ...................: "3,481 93,825 69,724 58,657
Tallowl, inedible and tgreases
(excluding wo~ol grease) .........: 929,240 1,127,007 810,850 1,026,294

Fish-liver oil ...................: 3/ 2,059 2,459 1,508 1,542
Fish oil ............~.............: 3/20C4,109 242,3191 115,715 61,423
Marine mammal oil ...............: T/ 5E,281 26,627 26,439 19,710
Total, anknal ............,,.: 5,428,424 5,858,725 5/ 3,493,212 5/ 3,886,488
Vegetable oils -:
Babassu oil ......................: 29,503 71,379 53,054 47,093
Castor oil .......................: 52,273 75,306 51,619 72,906
Coconut oil ................~......: 256,850 273,271 203,793 259,339
Corn oil ......................... : 136,729 150, r55 5 1017,910 119,971
Cottonseed oil ...................: 1,677,673 1,389,792 807,990 668,765
Linseed oil ......................: 440,614 564,508 398,358 413,969
Olive oil, edible ................: 4,742 6,853 6,432 1,197
Olive oil, inedible ..............: 3 13 13--
Palm-kernel oil 6/ ...............: 10, 95 3 3,713 2, 898 7/ 7,469
Peanut oil .......................: 78,152 73,138 66,528 26,473
ejrilla oil 6/ ...................: 1 2,406 2,406 8/
Sesame oil 6~/ ....................: 3,067 4,525 2,822 5,539
Soybean oil ......................: 323,343 457,550 301,303 380,795
Tung oil .......................... 3,0070 3,000 9/ 700
Total, vegetable .............(- 3,043,903 3,0^76,09 2,0816 ,04,1
Grand total ..................: 8,472,327 8,935,034 5/- 5,5~01,338 5/ 5,890,702
Compiled as followrs:----I---
Butter, Agricultural Miarketing Service.
Lard, Bureau of Animal Industry and Bureau of Agricultural Economics.
Tung oil, Bureau of Foreign and Domestic Commeree. Po~t officially reported
prior to 1939.
All other oils, Bureau of the Census.
If Preliminary. 2/ I'ot available. 3/ Revised, FlReported factory production
-.of lard, including neutral lard, Bureau; of the Census. 5/ Ekeluding farm produe-
ti ion of butter and lard. 6/ Oil equivalent of imported r~aw material. 7/ April-
J;unep, repor-ted factory production. 8/ Less than 50'0 pounds. 9/ Estimate.


























89,691 94,273 77,562 440

2/ 650 650 ~5S:. $6
1,585 1,947 1,450 00
363,941 536,796 257,592 259,$ 0
22,24-2 13,965 12,971
83,331 31,617 30, 802 1
123 49 44 .1 2
5,301 18,867 16,154 1 f
71,c86 62,866 48,773 445
22,856 28,180 24,101 .2 0
5,444 11,304 5,373486
2,569 2,236 2,236 ---
271,325 288,603 214 837 18a0
5/ 15,553 3,779 3,244 2,808~::'j
31, 821 51,284 37,5828,0
5,960 9,321 5,273 9,005I ;.
7,040 3,520 3,484 40
5/ 2,856 4,126 1, 859 2,774
77 194 194 I
11,855 5,384 4,846 3
1C7,456 78,718 56,348 90,86bF~
274 2,564 2,286 '284
3 1 .1 4
1 032 198 9 f55 971 73.0 100 657 40~i~
1.122,089 1,050,244 80762 69767


Cont inued- -


FCS-415


- 10 -


Table 3.- Imports of specified fats, oils, and oil-bearing materials (in teamts
of crude oil), United States, 1938 and 1939, Jan~uary-September 1939 and 1940~

Year : January-Septembea- .ai
Itm : 1938 ": 1939 1/ : 1939 : 14
: 1,000 lb.. 1,00l. oRRae~ ,00
Animal fats antd oils -:
Butter ............,.... .......: 1,624 1,107. 781 91~i~ls
Grease, wool ....................: 1,786 4,178 2,820 2 ,,38l
Lard ............................i 2 1. /
Stearine, antreal, edible ........: 400 2/ 2
-Tallow, edible ..................: 75----
Tallow, inedible ................: 1,229 1,496 891 89i
Fish-liver oil ..................: 3/ 62,175 66, 242 52,946 1 0$
F~ish oil .......................: 528 960 564 54
Na~rine mamrral oil ...............: 22,072 20, 289 19,560 A,0


Total, animal ...............:
Vegetable oils -:
Babassu oil .....................:
Cashewc~ shell oil ................:
Coconut oil .....,................:
Corn oil ........................:
Cottonseed oil~ j ..............:
Linseed oil .....................:
Oiticica oil ....................:
Olive oil, edible ...............:
01ive-oil foots .................:
Olive oil, inedible .............:
Palm-k;ernel oil .................:
Palm oil ........................:
Peaniut oil ......................:
Perilla oil .....................:
Rape oil ........................:
Sesam~e oil ......................:
Soybean oil ........r.............:
Sunflower oil ................:
Teaseed oil .....................:
Tung oil ........................:
Vegetable tallow7 ................:
Other 6/ ........................:
Total, vegetable ............:
Total, all fats and oils ....:


I



























717,792 537,316 580,751


F0S-45


- 11 -


Table 3.- Imports of specified fats, oils, andt oil-bearing materials
(in terns of crude oil), United States, 1938 and 1939,
Jan~uary,-Sepstembter 1939 and 1940 -C~ontinued

Yea : aur-epebr1
It em '~_~ ~ 1
19988 193c 1939 : 1940
-- -II~~`,: 1,00 lb. 1,00 C7;-b. 1,00 l~O b. 1 ,000 lb.


Reaw materials (oil-equivalent) -:
Babassu nuts and kernels (6 9)j ..: 32,0?21
Castor beans (42%)j ..............: 47,91[
Copra (639) .....................: 323,201
Flaxseed (2330) ..................: 283,91
Palm nuts mead kernels (45%) .....: 10,950
Perilla seed (370) ..............: 1
Sesame seed (45:0) ...............: 3,067

Total, raw material .......... 701,C72


71,717
68,297
270,934
-296,200
3,713
--- 2,406
4,525


55,768
44,413
173,0370
255,939
2,898
2,406
2,822


45,286
68,552
280,517
171,10\8
9,749
2/
5,539


Grand total .................i 1,623-,161 ..1l,768,036j 1,344~-,S 78 1,2 78 ,423

Bureau of Agricultural Econotisics. Compiled from For~eign C~ommerce and Favigation
of the United States and konth~ly Summ7ary of Foreign Comclerce of the U~nited States.

Prel im~inary.
Less than 500 pounds.
SRevised.
SCrude plus refined converted to crude basis, dividinr- y );' 3.
5/Excludes free for export.
Includes castor oil, hemp~seed oil, and kapook oil.












: ~Year
: 1958 :


Item


1,439 3,901
255,753 213,960~


~ ~I


1


310,584 ,341,087


and oil-bearing materials
,ates, 1938 and 1939,
.939 and 1940

:January-September 1/j
1939 1/r 1939 1940 _.
000 Ib. 1,000 lb. 1,000 lb.


2,308 1,539 211.

6,896 5,274 569.
9204 6 813 7 75,15.
4,003 2,359 4,8

277,272 213,557 168,585

:33 649 23,30i7 25,082 :
310,921 236 864 193,86-7_
615 441 351
5,466 4,145 1,184
4,894 2,411 945
153 46 71
S276 203 92
2,042 1,032 1,616


- 12 -


FOS-45


Table 4.-Exports of specified fats, oils,
(in terms of crude oil), United St
january-September, 1


Animal fa~ts and oils -:
Butter: Exports ............: 1,959
Shipments to United :
States territories :6,300
Total butter .............: 8,259
Greases ....................: 3,295


Lard (including neutral):
Exports ............:
Shipments to United :
States territories :
To~tal land ...............:
F'eat's-foot oil ............:
01eo oil ...................
01eo stock .................:
Stearine, animal, edible ...:
Tallow, edible .............:
Tallow, inedible ...........:

Pish oil ................ *
Total a~imail .............:


2034,603

29,459
234,062
845
5,360
2,874
181
260
469

2,677
258,282


2,279
339,853


.:


. ii


Vegetable oils -
Castor oil .................: 572 1,348
Coconut oil 2,/ ..*...........: 7,228 26,038
"~~ 3/ ...........: 1,888 9,503
Corn oil ...................: 113 180
Cottonseed oil 2/ ..........: 4,.872 13,64 5
Linseed oil ...r.............: 890 2,566
Palm oil, including palm-:
kernel oil 3/ ...........: 5,542 13,871
Peanut oil 4,/ ..............: --- 325
Soybean oil ................: 6,412 12,111
Tung oil 3/ ................: 4,628 5,911
Total vegetable ..........: 32, 145 85,498
Total, all fats and oils .: 290,4227 4125,351-
Raw materials (oil-equivalent)-:
Copra (63/0~) 3/ .............: 37,021 7,562
Soybjeans (114 ) .............: 22,215 87,884
Total rawr materials ......: 59,236 95,446
Grand total ...........i 349,663 520,797


991,'
29,669-
8,507
165
12,742
3,411

17,936
2,881
11,929
3,398
91,569s
305 ,529


691
8,534
3,353
71
5,176
725

6,175
7
5,882
4,744
35,358
291,111


15,735
19,825
35,558-


3,7;0
15,733
19,473


Bureau of Agricultural Economics. Com Eled from Foreign Commerce and NEavi-
gation of the Ulnited States and )Conthly Summary of Foreign Commerce of the
United States.
1/ Preliminary. 2/ Crude plus refined converted to crude basis dividing by
0.94 in the case of coconut oil and 0.93 in the case of cottonseed oil.
3/ Reexports. 4/' Hot separately reported prior to 1939.












Item


Table 5.- Stocks of primary fats and oils, United States,"
Jar~uary 1, 19J39 and 1540', LSeptember 5O, 1909 aEnd 1940


FOS-25


: -Jpn. 1 .:SE^Tt;. :O
: 1959 _:_ 1940 : 1_ :1401
: 1,00 lb. 1,000 lb. 1,COL' lb. 1 0 lb


Animal fats and ails -:
Butter ..............:
Gr~eases .............:
Grease wool .........:
SLard,including neutrib
N~eatsfoot oil .......:
O 0eo oil ............:
Stearine, animal:
edible.....,.......:
Tallow, edible.......:
Tallow, inedible.....:


.128,:70
58,262
3,042
107,'421
1,E98
B,954

4,527
7,5"6
1941,947


,55,4:62


162,105
1,655
6,599'

4,450
8,051
24G,?~0'


154,594
48,781
'4i,052
' 8,734
1,265
=1,509

1,824
5,3~9
235,225


127,971
115,503
5,?l4
234,594
S1,4?3
:3,456

2,814
5,964
313,926


SFish-liver oil.......: 91,01.3 33,653 30,6;86 21,146
Fish oil.............: 146,160 16, 114?lC,822
biarine mammal nil....: ??3,T":i 44.-?6 "r`,:35 56,994
Total animal : 771,293; ? S~' 4 609 -72, 15 __ 95, P7 l
Vegetable oils crude :
.---basis d :-
Babaesu oil..........: 1,731 6,2'5 .7,036 4,297
Castor oil...........: 17,187 12,277 14,142 22,50-2
Coconut oil..........: 216,5?0 191,082 .. .809,665 ?i4,325
Corn oil.............: 27,978 34,349 2;,-;86. 2,870
Cottonseed oil.......: ?83,2 24 777,179 .. 551,966 4;54,512
Linseed oil..........: 141,8032 14kc,4G7 ..1,.'1113
Olive oil, edi-ole....: 4,1;50 F,C ? .. .. 5,136 9,356
Olive oil foots,.....,: 12,4.?0 1, 15,7?1 21,022
.Olive oil, inedible..: 162 2,256 .. 1,349 3,436
Palm-kernel oil .....: 5,4931 ,?4 1,7'?2 2,323
Palm oil ............: 150,d50 n,3 .. .1";?,011 161,453
.'Peanut oil...........: 27,55" 21,206 30,455 13,042
Perilla oil..........: 1362 .15,153 20,069 5,936
Rape oil............,: 8,959 6,57S .. ,114,609
Sesame oil..........,: 205 189 542 1,7?8
Soybean oil.......,,.: 76,709y ?1,562 45,329 76,478
Tung oil.............: 61,139 31,4 .3;50,63 66,75-4
Total vegetable ....: 1 ,546 ,i;3 1,47,76 1, 20, 250 1, 209 r?02
Total animal and:
ve~c3Z.getab...... 2,317,523 ',255,868 1,95S,04?5 2,195,.578
Compiled froIm reports of Bur~eau of the Census, except butter and lard, which are
from cold storage reports, Agricultural MZarketing Service.
1/ Preliminary.
IfRefined oils have been converted to crude basis biy dividing by the following
factors: Babassu oil, corn oil, cottonseed oil, palm-kernel oil, and palm oil,
0.93; coconut oil, peanut oil, and! saybean oil, 0.94.






Fo s-45


- 14 -


Table 6,- Apparent disappearance of specified fats and oils (crude basis)
in the United States, 1938 and 1939, January-September 1939 and 1940

: ~Year : January 5 tember i
Item : 1'38 : 1939 1./ : 1939 : 1
:1.000 lb ,0 1,000 1,00lb 1 000 U
Animal fats and oils -:
Butter .................,,..,.: 2.193.775 2.308,621 2/1,368.559 2/1,340,$
Grease, wool ................: 5,945 9.777 6,777 t
Lard 1/ ......................r 1,420, 438 1,626,813 2/ 768, 071 2}9r6,00
aea~t's-foot oil ..............: 3,803 4,o67 3,274 2.f~jiO
0100 oil .....................: 83.383 69,749 53,624 ssi2 $$1
stearine, animal, edible .....: 47,135 37.59e 30,526 28,18@i
Tallow, edible ...............: 94,6580 93,ook 71, 648 60~,692i
Tallow, inedible and greases
(excl. wool grease) f/ ....,: 942,291 1,079, 289 780,674 88.g

Fish-livor oil ..............,:Z/ 51.895 66, 060 51,sko2774
Fish oil .....................::J/ 162,262 2230,159 '147,56919,
Marine mammal oil ,..,.........:Z/ 89,386 sk, 693 51,937 8,
Total, animal .....,.........: 5,094,993 5, 593, 830 4/3.334,499 .4/3.511.5
Vegetable oils -:
Babassu oil ........,: 30,961 67,565 48,429 49 ,40%
Cashew shell oil fi/ ..........: 1,585 1,947 1,450 3 ,008.
castor oil ...................: 53,155 73,069 53.974 62,029~
coconut oil ,................:1/ 602,839 600,074 456, 403 7,9
corn oil .....................: 149,351 157,469 124,202 13~2,211
cottonseed oil .,.............: 1, 658,4o6 1,413,909 1,064, 974 988., 79%fi
Linseed oil .,.,,.............. 4s9,527 561.337 426,851 437,882
oiticica oil 5/ .............,: 5,301 18,867 16,154 12, 6j72:
olive oil, ediorlo ............: 73.346 65, 842 55,019 4c4,g~
Olive-oil foots .,.............: 18,483 26,116 20,750 ~kgth
Olive oil, inedible ........,,: 6,282 8,923 4, 899 4,633
Palm-kernel oil ..,..,........: 48,920 11,359 9, 826 20
Palm oil .........,........,...,:31 270,097 291.950 232,301 16,4
Peanut oil ................... 90, 846 82, 883 66, 889 34,6}) ~
Perilla oil ...............: li1,294 52 ,159 33,541 1,d
Rav ol ..............: 8,oo3 5. 752 6, 081 1,0
sesame oil ...,..............,: 15,387 8,081 5,969 3-,9705
saybean oil ....,.,,.........: 305,395 454,712 328,66019 '6672
sunflower oil al ....,,......o: 9 9 }
Teaseed oil F;......... 11,855 5,384 4,846 3.350i
rung oil .,.........,...,. ...:J /O 9029 5 105, 596 82,170 52,.g3)
Yegetab~le tallow 5i/ ,,....,,,,r 274 2,64 2,286 ?M
Other 1/ ........,.......... ..: 2 6//ff
Total, vegetable .,,.........: 3,9ii2,261 C, 021,752 3,05, 868 2. 2,81,611~

Total, all rats an~d oils ..,: 9,067,21) 9,621.552 !1/6,380.367 ]{/6,343r13~0

Bureau of Agricultural Zconomics, Computed from data on production, trade, and
stocks.
If Preliminary. 2/ Excluding farm production, a/ Revised, 4/ Excludes farm-
produced butter and Irard. 51 Imports. 6/ Loss than 500,000 pounds, 1j Includea
hempseed and kapok oils,





~


--


8,526 8,375
5,402 5,497
65 140

1 1



18 905 13,913
1,261 1,190
595 426
--- ---


1,856 1,628
17,6"0 1?,355

4,264 4~,179
9?3 938


Production:
Colored..................: 10)7. 108
Uncolored................: 92,292 27,997
Total 2/ .............: 32,599 28,105
Materials used:
01eo oil.................: 1,110 862
01eostearine.............: 2C4 329
Lard neutral............ :11 115
01eo stock. ..............: 119 65
M~onostearine.............: ----
Total, animal..........: 1 617 1,3"1
Cott onseed oil1...........: 10,24 6 93,034
Soybean oil..............: 4,292 7,3?1
Peanut oil...............: 331 S58
Corn oil.................: --- 35
Cottonseed stearine......: --- IC
Vegetable stearine.......: 9 ---
Tot al, dome stic
vegetable............: 14 R73 16,708
Coconut oil..............: 8,711 3,113
Babassu oil..............: 871 1,400
Palm oil.................: 114 ---
Total, foreign
vegetable............: 9 b96 4,522
Total, fats and oils...: 26,191 22,601


FOS-45 15 -

Table 7.- 01eamargine: Production and mate-ials used in manufacture,
United States, Septeir.ber 19r38 and 1939, July-September 1940,


September


Item


1938 1939 J uly Au.

: 1 ,000 1,000' 1 :C O 1 ,000


Sept.

1, G001


:pounds


pounds


pc~nds


poulnds pounds


208
21 812
22,021


183 ,
21,481
21,684


214
26 328
26 542

1,240
282
426
95
18

9,956
7i,60j5
153


---


17,715
1,142
331
---


1,473
21,249

5,118
1,112


1,123
282
318
96
--- 3


283
312
98

1,9c16


Miilk. ................... ...:
Salt and other miscellaneous


6,216
1,;72


1,281


Compiled from Internal Rievenue records aind Int~rnal rrevenue Bulletin.

Preliminary.
Total of unrounded numbers.


1940 1/




UNIVERSITY OF FLORIDA




3 1262 08905 1683


II ;i i












































"h



















it
















rii







+ xxx x iiiili

xx