Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-01-24
The Outlook for Peanut Oil

market outlook for the crop produced
in 1918. The following data repre-
sents the best information obtainab1e
on this subject. 1t has been prepared
from information obtained by the
United States bureau of markets
| through the courtesy of Prof M. G.
Cay, field agent in marketing of the
Georgia State College of Agriculture.
Our peanut growers should read, 1t
carefully and be advised accordingly.
1t has come to our attention re-
| Gently that the peanut market has
suffered a severe decline since the
signing of the armistice. This de-
cline has apparently been greater
| in the Virginia-CarOlina section than
in the other producing areas further
south. In this section the price TO
| the farmer has declined 10 cents the
pound to cents the pound for good
quality nuts of the large or Virginia
| type which are used primarily for
roasting and for the better grades
| of sailed peanuts and CONNECTIONS.
| There has also been a material de-
| cline in the Spanish or small type
peanuts which are used commercial
| ly primarily for oil and Smelling
stock, with very little demand for
nuts even at low prices. The reasons
assigned for the drop in prices of the
Spanish or small type nuts are, first,
barge against foreign peanuts being
lifted by the war trade board and
permitting a flood of foreign peanuts
onto the markets Of this country;
second, the decline in peanut oil due
to the embargo or expectation of
oils and fats. The present low de-
mand is ascribed to these causes and
to the further fact that the oil mills
are now devoting the greater part
of their attention to the crushing Of
cotton seed rather than peanuts.
In regard to the danger of extern
sive importations of foreign peanuts
we are advised by the war trade
board that the embargo on Oriental
peanuts is still in effect and that no
steps are being taken to remove it. "A
in foreign countries made by the
project of foreign market invest1-
cations of this bureau develops in
formation that seems to make
groundless any fears of extensive
| imp ortations of foreign peanuts.
The foreign market division of this
bureau has assembled some inter
esting information relative to the i'm
port situation. The data follows:
Importations for the first nine
amounts which would in no way eff
feet the market of the United States,
were from the Orient, and approx
mated total of 64,785,S20 pounds,
valued at $4,465,271. OF the amount
| 2,448,631 pounds valued at $153, ITO
We're imported in the shell, and g.
| 337, 1S9 pounds valued at $4,312, 101,
were shelled, the wholesale price at
forcing port of origin being $125.31
per ton of 1000 pounds for peanuts
in the shell, and $13835 per ton of
| 1900 pounds, shelled.
| 1mportations from Japan for the
first nine months of 1918 were 49,
| 024,815 pounds as compared with FL
696,286 pounds for the year of 1917,
and II ,015,703 for the year 1914.
China for the same period exported
| to the United States 3,790,138 pounds
as against 5,949,197 pounds for the
year of 1917, and 5,722,217 pounds
| for the year 1914
| From an official report of the Cana
dian trade and commerce department
giving a survey OF the Japanese pea
| nut market, we were informed that
| on account of storms and drought,
the total Quantity of peanuts harv-
ested in 1917 showed decrease of 80
| per cent, compared with that of the
| preceding year. On the other hand,
American buyers were very active
and in April, 1918, the price advanced
from 1900 yen q yen equals $.49Sl
yen per 100 kin approximately 5.6
cents to SO cents the pound) when
suddenly the American embargo was
announced and the market seemed
lin great danger. However, as al
most all the stocks were cleaned out,
no radical fluctuation occurred.
On account of the American en-
barge, the Japanese government
| gave advice to it's people to grow
| other vegetables in preference to
| peanuts, and it is expected that the
year 1918 crop will decrease about 20
| per cent as compared with last year.
The peanut market of France and
! England have been Shut out of the
| %f,J J1E-,r
! shortage in ocean tonnage. The crop
in China and India is reported as
| good, the Japanese crop is estimated
as about ~ per cent short of 1915.
| Because Of it's proximity and small
| quantity and the availability of trade
routes, it is believed that the Span
ish crop will be readily absorbed by
| the European markets and that i'm
portation to the United States will be
comparatively limited in quantity.
Attention is also called to the re-
port of the American consul, dated
at Sarnia, Ontario, November 80,
| 1918, wherein it is reported from OF
taWa that the restrictions of the Ca
| madam government against the inn
| portatlon of nuts and vegetables will
| be raised, and that, commencing De-
cember 1, applications will be consid-
cred by the Canada food board for
| the permission to import any varie-
ties of two classes of foodstuffs The
|
approximately 100000 pounds of
| peanuts.
cat the signing of the armistice,
| the allied governments cancelled
| their requirements of glycerin for
| 1919 and endeavored to dispose of
| the remaining contracts for glyCerin
for 1918. This caused the soap
maker, who is about the largest con-
sumner of peanut oil, to cut down his
| production of soap, which necessary
| ly curtailed the consumption of all
fats and oils, and as the soap maker
| began to curtail his consumption OF
| fats and oils, other consumers as
well refused to buy on, a declining
market, thereby allowing their
stocks to become very low, and are
| buying from hand to mouth. This
caused the oil in the country to ac-
cumulate in the hands of the pro-
ducers and dealers, making it appear
| as if there was an enormous surplus
in the country, whereas this is not
the case. the oil being simply in the
hands of a few, whereas. under nor
| out in small allottments in the hands
of a great many. This condition re-
acts upon the mills which, if they
cannot dispose of their product, will
not buy raw materials. This may
| be considered one reason for the ap-
| parent condition of the peanut mar
| ket.
Another reason is because of the
| present congestion in cottonseed
mills, which mostly press the pea
nuts, where the condition of labor
and transportation has caused a tenn
porary overflow at the mills, and
| they under the present conditions
will not buy peanuts. AS you can
| readily see, az soon as labor condi-
Of IA