•ouTLOOK ISSUE I 01947 ;a: . ·~~ SITUATION BUREAU OF AGRICULTURAL ECONOM I.CS UNITED STATtS DEPARTMENT OF AGRICULTURE _F_o_s_-_11_1 __________~-«~B SEPTEMBER 19~6 FATS ANO OILS: PRODUCTION FROM DOMESTIC MATERIALS, I DOMESTIC DISAPPEARANCE FROM ALL MATERIALS, AND • INDEX NUMBERS OF WHOLESALE PRICES, 1912-46 POUNDS ,---~-------,-------.-------.-------,~-----.-------,-------. I BILLIONS) 10 8 6 PRICES OF EIGHT DOMESTIC FATS AND OILS ( 1935- 39=100) 200 150 100 1950 I946 PRODUCTION, DJSAPPEARAN<.:b·, AND PRICE ,.URECAST. DISAPPEARANCE INCLUDES IMPORTED AS WELL AS DOMESTIC FATS AND OILS U. 5. DEPARTMENT OF AGRICULTURE NEG. 432.72 BUREAU OF AGRICULTURAL ECONOMICS Wholesale prices of 8 domestic fats and oils probably will average over 200 percent of 1935-39 In the second half of 19~6 compared with 152 percent In the first half year. This lncrea$e reflects the temporary lapse of price cell ings in July and August, exemption of butter from price control, and increases in price cell lngs for lard and other Items In September. With reductions In the 19~6 fall pig croJ and In the 19~6 output of flaxseed, do.mestlc production of fats and oils will be smaller in the first 9 months of 194-7 than a yea.r earlier. Stocks at the beginning of the year probably will be the smallest In 20 years. Imports may Increase, but the net balance of Imports over exports w·Jll still be far below prewar. These factors will support prices at a high level In 19~7, althou.gh a decline In prices may occur in the latter part of the year If there Is a general business recession. SEPTEMBER 1946 - z - Table 1.- Yfuolesale price per pound of fats, oils, and glycerin at specified markets,. and index numbers of prices of fats and oils, August 1944 and 1945, June-August 1946 PRICES Item August 1 August 1946 1944 1945 August Cents Cents Cents Cents Cents Butter, 92-score, Chicago ••••••• , , ••• , , •••••• , , , , •• ••••• ,, , c 4i:6 4i:6 51,5 1 69.6 69.7 Butter, 92-score, New York ••••••••••••••• , •••••••••••• , •• , • 1 42.2 42.2 52.2 y1o.o 70.5 Oleomargarine, dom. veg., Chicago ......................... , .: 19.0 19.0 19,0 21.0 25.5 Shortening, cottonseed, hydrogenated, 10-dr~ lots, N. y, ••1 17.8 17.8 17.8 17.9 19,1i Lard, loose, Chica6o ••••••••••••• ;, ••• , ••• , •••••• , •• , , , •••• : 12.4 1~.8 13.0 20,9 31.4 Lard, prime steam, tierces, Chicago ••••••••••••••••••••••••! 13.4 13.8 14.0 22.0 32.8 Lard, refined, 1-pound cartons, Chicago ••••••••••••••••••••1 16.6 15,6 15.8 '})27.0 35.7 Oleo oil, extra, tierces, Chicago ••••••••••••••••••••••••••1 13.0 13.0 13.0 16.7 Oleostearine, bbl., N. Y. • •••••• , ••••••• , ••••••• , •••••••••• .s: 10.5 10.5 10.5 _y'l4.8 ;/17 ,8 Tallow, edible, Chicago • , • , , , , , •• , , , •• , ••••• , •••• , •• , •• , • , , 1 9.9 9,9 9.9 14.8 17.6 • Corn oil, crude, tanks, f,o,b, mills ...................... ,, 12.8 12.8 12.8 12.8 12.8 Corn oil, edible, returnable drums, l.o.l., New York •••••••' 16.5 16.6 16.6 16.6 Cottonseed oil, crude, tanks, f,o.b.; S.E. mills ............ , 12.8 12.8 12.8 y'l6.2 y15.s • Cottonseed oil, p.s.y., tank oars, N. Y, •••••••••••••••••••! 14.3 14.3 14.3 17.5 Peanut oil, crude, tanks, f.o.b. mills , .......· ............. 1 13.0 13.0 13.0 13.0 13.0 Peanut oil, refined, edible (white), drums, N. Y. ,,,,,,,,,, 1 16.5 16.5 16.5 Soybean oil, crude, tank cars, midwestern mills ••••••••••••1 ll.B 11.8 ll.B 11.8 13.7 Soybean oil, edible, drums, l.o.l., N.Y. ••••••••••••••••••! 15.2 15.4 15.4 17.6 20.0 Sunflower oil, semi-refined, tank oars, f.o.b, N. Y. •••••••• 14.3 14.3 14.3 14.3 14.3 • Babassu oil, t8.Ilks,. N. Y. ••••••••••• •••••• •••••• •• •••••••••' ll.l 11.1 12.0 12.0 Coconut oil, Manila, crude, o,i,f, Pacific Coast y ..... ·... : 11.0 11.0 n.o 11.0 Olive oil, imported, edible, drums, N· y, ................... 1 126.7 77.5 Olivo oil, California, edible, drums, N. y, ••••••••••••••••• 60.7 60.7 58.7 58.7 58.7 Olive-oil foots, imported, drums, oarlots, N. y, •••••••••••' 18.0 18.0 18.0 Palm oil, Congo, crude, bulk, N. y, 5/ •••••••••••••••••••••• 11.4 11.4 11.4 11.4 11.4 Rapeseed oil, refined, denatured, bulk, N. Y. ••••••••••••••' u.s _o/11.6 13 .o 13,0 13.0 Tallow, inedible, prime, oarlots, Chicago .... ~ ............. : 8.6 8.6 8,6 12.1 8,6 Tallow, No. 1, inedible, Chicago •••••••••••••••••••••••••••I 8.4 8,4 8.4 11.8 8.4 Grease, A \Vhi te, Chicago • , • , , • , ••• , , •••• , , , •••••• , ••••• , •• , 1 8.0 8,8 8.e 12.2 8.8 Menhaden oil, crude, tanks, f.o.b. Baltimore •••••••••••••••: 8.7 8,9 8.9 10.4 8,9 Sardine oil, crude, tanks,. Pacific Coast •••••••••••••••••••= a.o 8.9 8.9 n.o 8.9 Whale oil, refined, bleached winter; drums, N. Y. ··~··•••••I 12.3 12.3 Cottonseed-oil foots, raw, (50% T.F,A.) delivered, Eas~ ••••• 3.6 3,6 3.6 4.1 3.6 • Linseed oil, raw, tank oars, Minneapolis •••••••••••••••••••! 14.3 14.3 14.3 16.4 15.6 Linseed oil, raw, nonreturnable drums, oarlots, N. Y. ······• 15.5 15.5 15.5 17.6 16.8 Oiticica oil, drums, £.o.b. N. Y. •••••••••••••• ••••••••••••t 20.4 24.8 25.5 '})25.6 26.0 Tung oil, returnable drums, oarlots, N. Y.................. : 39.0 39.0 39.0 39,0 39.0 Castor oil, No. 3, bbl., N. y, .............................. : 13.8 13.8 14.8 14.8 14.S Castor oil, No. 1, tanks, N. y, ............................ , 13.0 13.0 14.2 7_/19.8 Castor oil, dehydrated, tanks, N. y, ...................... ,, 17.7 17.9 19.4 19.9 Cod-liver oil, med, U.S.P., bbl., N. Y. ••••••••••·•••••••••' 31.6 33.2 35.2 35.2 35.2 Cod oil, Newfoundland, drums, N. Y........................ .c 11.7 ll.5 11.9 11.9 11.9 Degras, cormnon, barrels, N. Y. ••• ••••••••••••••••• •••••••••: 11.0 11.0 u.o ll.O 11.0 Neat•s-foot oil, pure, oarlots, barrel.s, N. y, ............. : 18.2 15.!3 16.0 18,8 22.0 Glycerin, soap lye, basis BOf., tanks, N. Y. , ............... , : 11.5 11.1 11.5 12.0 11,5 INDL:X NmffiERS (1935-39 100) • = Eight domestic fats rurrd oils (1910-14 • 100) •••••••••••••••• 142 142 162 244 SevQn domestic fats and oils (1910-14 = 100), butter excl •• : 148 150 151 264 E:ight domestio fats and oils ................... (, 72*) .... , 1 139 140 160 24:0 Seven domestic fats and oils, butter excluded •• (,79*) •••••• 143 146 147 256 All fats and oils (27 items) , .. , ............... (,73*) ••••• s 147 148 166 222 229 All fats and oils, except butter (26 items) •••• ( ,82*) ..... : 154 155 155 204 207 Grouued ~ origin: An~mal fats ... , .............................. (.69*) ·····t: 138 139 165 230 246 Marine animal oils ........................ ,,,(,'77*) ..... : 170 170 171 187 171 Vegetable oils, domestic ,,,,,,,,,,,,,,,,,,,,,(,84*) ..... ' 160 160 160 190 188 ~'egetable oils, foreign ..................... ,(,88*) ..... : 177 177 177 212 183 Grouped ~ use: Butter ..-:-:: .................................. (,67*l ••••• I. 139 139 173 236 236 Butter, seasonally adjusted ••••••••••••••••••(,67* ..... : 143 143 190 254 243 Lard •••••••••••••••••••••• •••••• •••• ,, ••••••• ~.78* ••••• 1 131 135 137 215 322 Othar food fats ...............................·84* ••••• t 168 168 168 221 200 All food fe.ts .............................. ,71* • • • • • I 144 145 168 231 244 Soap fats • , , , , • , ••••• , ••••• , , , , , , ••• , , , • , ••• , , 80*) • • • • • I 150 lnO 150 17S 154 Drying oils ................. , .. , , , • , .. , .... , , (,85*) • • • • • I 175 174 174 193 185 Miscellaneous oils .......................... , (,71")· ..... : 154 154 163 163 163 All industrial fats and oils ••••••••••••••• (,82*) ..... : 160 160 160 103 166 Prices compiled trom Oil, Paint and Drug Reporter, The National ProVisioner, The Journal of Commerce (New York); a!'d reports of Production and Marketing Administration, and Bureau of Labor Statistics. Excise taxes and duties included where applicable. Index numbers of earlier years beginning 1910 are given in Technical Bulletin No. 7~7 (~&40) and The Fats and Oils Situation beginning December 1940. 1( Revised. !(Chicago, ;.'Loose, N. y, ij Southwest mills. y Three-cent processing ta.."t c.dded to price as originally quoted. .o/ New Orleans. 7; Less than carlots. *Multiply by this factor to convert ourrent index number (1935-39 = 100) to old basis (1924-2S: lOO). FOS-111 - 3 - T H E F A T S AND 0 I 1 S 8 I T U A T I 0 N Approved by the Out;lool~ and Situation Bm:.rd, September 24, 1946 -·- -··-------- ------------- Contents· SlmJTIJary 3 0 1.ltlook 6 Reoent Developm6nts ••••.••••.••••• 14 Go\rerrun.ent }_c ti ons ........ ., o • o ••••• 16 SUMMARY United Sta'ces imj)orts of fats and oils are likely to increase sub- stantj,_ally in 194'7, Export::, on the other ha::1.d, are exre0ted to be smaller than in J.S4E1, largely ar; a recwlt of reciuced prodt1ction and stocks in this country. Expol't su~;pli.os of copra in che PhiJ.iprines 8.nd thA "outer islands" of the East Indies, whale oil in the Antarctic, <:Lnd linseed oil in Ar"'gentina are likely to increase r.:.a teri&lly in lc:-14'7. Total exports of fats m:d oi:;,<" from surplus-proc'ucing ar:;as, however, will ;S_ti_ll be well below prewar in H47 anC. perhaps in 19-±8. Vvhale-oil production in the Antarctic under inte~·national ag:::·eement is limited to about 60 percent of thA prewar lvvel oi' 1 billion pounds. Export supplies • of fats and oils in lndia will be less than nra11mr becttuse industrial development and increased consumer Gpendir:g IWWL r in India l1ava resulted in an increased consumption in that country.