OIL CROPS YEARBOOK October 29, 1996 Approved by the World Agricultural Outlook Board ----------------------------------------------------------------------------- OIL CROPS YEARBOOK is published annually by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20005-4788. OCS-1996. Please note that this release contains only the text of the OIL CROPS YEARBOOK-- tables and graphics are not included. Printed copies and diskettes of this yearbook are available from the ERS-NASS order desk. Call, toll-free, 1-800-999-6779 and ask for stock #OCS-1996, $15. ERS-NASS accepts MasterCard and Visa. ----------------------------------------------------------------------------- Contents Summary U.S. Soybean Situation World Oilseed Situation World Vegetable Oil Situation Situation for Other U.S. Oil Crops Cottonseed Peanuts Sunflowerseed Other Special Oilseeds Highlights Canola Flaxseed Corn Oil Imported Oils Animal Fats List of Tables Situation Coordinator Scott Sanford (202) 219-0835 Principal Contributors Mark Ash (202) 219-0712 Scott Sanford (202) 219-0835 Jaime Castaneda (202) 219-0826 Electronic Word Processing Data Coordinator Mae Dean Johnson Summary U.S. farmers planted 62.6 million acres of soybeans in 1995. Flooding and wet soil conditions prevented farmers from planting corn on schedule, especially in the areas neighboring the Missouri, Illinois, and Ohio Rivers. Although prices in the spring favored fewer soybeans flexed onto corn base acreage, farmers switched to soybeans as their next best alternative because of the delays. The 1995 U.S. soybean crop yielded 35.3 bushels per acre, down from a record 41.4 bushels in 1994. Given a late start, extreme summer heat, and an early killing frost, 1995/96 soybean production was 2,177 million bushels. With lower carryin stocks and production, total supplies in 1995/96 were 215 million bushels less than 1994/95's record of 2,731 million. Last spring, soybean meal prices reacted strongly to USDA reports that indicated tight grain stocks, less than expected acreage intentions for corn, and only modest declines in swine herds and slaughter. U.S. soybean meal prices surged, rising to an average $236 per short ton, over $70 per ton above 1994/95. Despite higher feed costs, robust pork and poultry demand raised domestic soybean meal disappearance to 26.8 million short tons, 1 percent above 1994/95. U.S. exports of soybean meal dropped 13 percent from 1994/95 to 5.9 million short tons. Strong world soybean meal prices and an EU tax on wheat exports encouraged consumption of grains over soybean meal and high meal prices favored EU imports of soybeans over soybean meal. Domestic crush fell from a record 1,405 million bushels in 1994/95 to 1,369 million in 1995/96. Reduced supplies and sharply rising inventories of soybean oil contributed to the lower crush. U.S. oil outturn was 15,236 million pounds, down 377 million from the 1994/95 record. U.S. total soybean oil exports were just above 1 billion pounds (down 61 percent from the previous year), with exports to China down to 299 million pounds. Negligible sales to Morocco, Algeria, and Tunisia also dimmed U.S. soybean oil exports in 1995/96. U.S. soybean oil prices fell steadily from early 1995 and remained under pressure as exports dropped and stocks built throughout the marketing year. The U.S. soybean oil season-average price declined to 24.75 cents per pound, its lowest level in more than 2 years. The 1995/96 soybean oil carryout of 2,010 million pounds was 77 percent above the tight 1994/95 level. Soaring vegetable oil prices in 1994/95 increased the contribution of oil as a percentage of the seed value. This stimulated the worldwide production of high oil-content seeds such as rapeseed and sunflowers in 1995/96. Larger rapeseed crops in Europe and Australia reduced the need to crush as many imported soybeans to satisfy oil requirements. Larger area planted and robust yields pushed India's production of soybeans and rapeseed to record highs. Bumper sunflowerseed harvests in the former Soviet Union and Eastern Europe contributed to less tightness in the world edible oil market. Palm oil, the world's most traded oil, also had a healthy production increase of 6 percent. U.S. cottonseed production in 1995/96 totalled 6.849 million short tons, 9.9 percent below the previous season. Cottonseed yield in 1995/96 was 856 pounds per harvested acre, 25 percent below the previous season and the lowest since the 1983 season. A smaller supply in 1995/96 constrained all offtake components, with crushing down 2.2 percent to 3.861 million tons, other use (primarily whole seed feeding) down 11.4 percent to 2.929 million and exports down 50.9 percent to 114,000 short tons. The season-average farm price for cottonseed was $107 per short ton, compared with $101 per ton in the 1994/95 season. The farm gate value of the 1995/96 U.S. cottonseed crop was $731 million. The 1995/96 U.S. peanut crop totalled 3.461 billion pounds, in-shell basis, 18 percent below the previous season. Both the national average quota support rate and national quota poundage in 1995/96 were unchanged for the previous season at $678.36 per short ton and 1.35 million short tons, respectively. Despite lower production in the 1995/96 season, quota peanuts remained in surplus supply with a significant quantity of quota marketed through the government peanut loan program. The season-average farm price for all peanuts in 1995/96 was 29.3 cents per pound, in-shell, up slightly from the 28.9-cent average in the 1994/95 season. Domestic food use in 1995/96 was 1.993 billion pounds, down 16 million from the previous year and the fourth consecutive year of decline. The farm value of U.S. peanut production in 1995/96 was $1.013 billion, the lowest since the 1985 season. Sunflower acreage declined in 1995 as expected returns for both spring wheat and barley were comparatively favorable and neither had a set-aside requirement. The 1995 U.S. sunflower yield dropped from 1994's bumper yield to 1,190 pounds per acre because of poorer growing conditions in all major producing States. Harvested area of all sunflower types in 1995 was nearly 3.4 million acres. Sunflowerseed production fell to 4,009 million pounds, down 17 percent from the large 1994 harvest. U.S. Soybean Situation Weather Problems Set Back 1995/96 Soybean Supplies U.S. farmers planted 62.6 million acres of soybeans in 1995. While this is far from the record of 71.4 million acres planted in 1979, it was the largest soybean acreage planted since 1985. The magnitude of the soybean acreage increase was surprising considering 1994/95's record production and large expected carryover, but can be explained by a number of factors. The ARP increase to 7.5 percent for corn in 1995 reduced the base acres that could be planted to corn, which should have lowered the normal flex acres (NFA) flexed to soybeans. But flooding and wet soil conditions prevented farmers from planting corn on schedule, especially in the areas neighboring the Missouri, Illinois, and Ohio Rivers. Although prices in the spring favored fewer soybeans flexed onto corn base acreage, farmers switched to soybeans as their next best alternative because of the delays. Farmers also may have planted fewer corn acres because of high fertilizer prices. Lack of rainfall during a midwestern summer hot spell erased the soil moisture surplus that existed early in the season. However, the hot summer also accelerated plant growth, allowing the development of some late planted fields to catch up. A widespread frost in mid-September descended much farther south than normal, setting several new record low temperatures for that time of year and freezing about 2 weeks earlier than normal. Many affected soybean fields were planted late or double-cropped and were not yet mature. While these States had relatively good pod counts, heat stress during the reproductive period and a condensed growing season reduced yields through shorter plant heights, fewer beans per pod, and smaller bean size. The high pod counts illustrate the effectiveness of higher seeding rates in recent years, even under suboptimal weather conditions. Mostly dry harvest conditions in September and October permitted the soybean harvest to advance on schedule throughout the Nation, a welcome event in a year beset with weather problems. On the other hand, several northern States (especially Minnesota and Michigan), in which soybeans were planted on time and benefited from abundant summer precipitation, set or neared their production records. The 1995 U.S. soybean crop yielded 35.3 bushels per acre, down from a record 41.4 bushels in 1994. With a late start, extreme summer heat, and an early killing frost, 1995/96 soybean production was 2,177 million bushels. With lower carryin stocks and production, total supplies in 1995/96 were 215 million bushels less than 1994/95's record of 2,731 million. The smaller soybean supplies trimmed ending stocks to 183 million bushels, which were the smallest since 1988/89. In terms of stocks relative to total use, 1995/96's carryout was the slimmest in 20 years. This tighter situation raised the U.S. season average farm price to $6.77 per bushel, from $5.48 in 1994/95. Solid export demand helped raise the average price for soybeans at the Gulf to $7.70 per bushel, the highest since 1988/89. Domestic Soybean Crush Suffers from Sluggish Product Exports Domestic crush fell from a record 1,405 million bushels in 1994/95 to 1,369 million bushels in 1995/96. Reduced supplies and sharply rising inventories of soybean oil contributed to the lower crush. Crushing margins, which are normally hurt by smaller supplies, rose in response to strong prices for soybean meal. U.S. soybean exports began the 1995/96 crop year robustly, with particularly strong demand from China and other Asian markets. Uncertainty about South American production induced importers to cover more of their early season requirements with U.S. supplies. And Mexico's soybean purchases from the United States, in the second marketing year following the North American Free Trade Agreement (NAFTA), increased 40 percent as its recovery from the 1995 devaluation crisis advanced. However, the European Union's (EU) soybean imports from the United States declined about 45 million bushels from 1994/95. The pace of soybean imports from the United States slowed by April as foreign supplies began to reach the world market, but the smaller South American harvest provided a late season boost. U.S. soybean exports finished the crop year at 851 million bushels, slightly above the previous season. Smaller Supply and Stable Demand Contribute to Soybean Meal Price Surge Soybean meal is still the most valuable component obtained from processing the soybean, and that relative value increased in 1995/96. Strong domestic offtake and a reduction in crushing buoyed U.S. soybean meal prices in 1995/96. Meal production slipped 2 percent to 32.6 million short tons. In late March, the low inventory reported by USDA's Grain Stocks indicated strong domestic use of feed grains in the first half of 1995/96 and that feed prices would have to increase much more to ration use. The Hogs and Pigs report reinforced that outlook by implying little slowing in feed demand was likely for the remainder of the crop year. Following corn, U.S. soybean meal prices surged, rising to an average $236 per short ton, over $70 per ton above 1994/95. But the explosion in corn prices dropped the soybean meal to corn price ratio to the lowest level in years, which encouraged a greater meal portion of the feed ration. On the other hand, scarce feed grain supplies last summer relative to wheat also made wheat feeding more attractive. Feed wheat, with its higher protein content, helped curb soybean meal consumption in the last quarter of 1995/96. Last winter's hog inventory was the largest December inventory since 1980. The fall pig crop, the breeding inventory, and intended farrowings for winter and spring quarters were above year-earlier levels. Sow slaughter rates, an early indicator of herd contraction, did not increase until the spring. Despite rising feed costs, hog farmers did not cut back their herds until spring of 1996, as strong pork exports to Japan helped buoy hog prices. Many livestock feeders staved off production cuts by relying on cheaper meal saved from last season or had forward-priced at more favorable prices than available later in the crop year. But average live weights for slaughter hogs in 1996 were up to 10 pounds per head less than in 1995. This implied that the large increase in soybean meal prices curtailed the length of time the animals were fed before reaching an acceptable market weight, which reduced feed consumption per head. As feed prices again rose sharply last spring, hog farmers scaled back their intended summer and fall 1996 farrowings 5 percent and 1 percent, respectively, from a year earlier. These factors substantially reduced soybean meal disappearance in the last quarter of 1995/96 from the previous 9 months. Poultry, the other major soybean meal consumer, was relatively resistant to rising feed prices. The vertically integrated industry was able to increase production because it delayed the impact of higher feed costs through hedging. Record exports of chicken and turkey products are still expected in 1996, which supported poultry prices and domestic production. Eventually, the burden of rising feed costs and lagging exports forced several major U.S. poultry producers to slow production last spring. The combined impact of these factors was to raise domestic soybean meal disappearance to 26.8 million short tons, just 1 percent above 1994/95. Asian Soybean Meal Demand Supports U.S. Exports Despite greater global competition and relatively firm domestic use that heated up protein meal prices, greater world meal trade supported U.S. soybean meal exports. China purchased 90,000 tons of soybean meal from the United States in 1995/96, compared with zero the previous year. Robust Asian demand moderated the reduction in total U.S. exports of soybean meal to 5.9 million short tons. A bumper sunflowerseed harvest let the former Soviet Union (FSU) reduce total imports of soybean meal. However, U.S. soybean meal exports to the FSU increased 80 percent from 1994/95 largely because of assistance to FSU countries under the P.L. 480 program. Conversely, strong world soybean meal prices and an EU tax on wheat exports encouraged consumption of grains over soybean meal. U.S. soybean meal shipments to the EU were down about one-third from 1994/95, while U.S. soybean exports were down one-eighth. Similarly, high prices diminished U.S. shipments of soybean meal to Japan, Canada, and Mexico. Although Brazilian soybean production set a record in 1994/95, low prices slowed marketings, and stocks as of October 1, 1995 had swelled. But higher prices eventually brought the seasonally large Brazilian stocks to market later in 1995. This propelled Brazilian crush and soybean meal exports to record levels in 1995/96, and resulted in the slower pace of U.S. soybean meal exports last fall. Brazil's strong corn prices and robust poultry production also contributed to the active crush rate. Sharp gains in Indian and Argentine soybean meal exports also increased competition later in the marketing year. Confronted with Mounting Oil Supplies, Soybean Oil Price Slips Soaring vegetable oil prices in 1994/95 increased the contribution of oil as a percentage of the seed value. This stimulated the worldwide production of high oil-content seeds such as rapeseed and sunflowers in 1995/96. But with global tightness of vegetable oils easing and protein meal demand strengthening, the oil market again returned to a secondary role for determining soybean product value. Rising soybean prices and falling oil prices combined to reduce domestic crush by 35 million bushels. U.S. oil outturn was 15,236 million pounds, down 377 million from the 1994/95 record. U.S. soybean oil prices fell steadily since early 1995 and remained under pressure as exports dropped and stocks built throughout the marketing year. The 1995/96 soybean oil carryout of 2,028 million pounds was 78 percent above the tight 1994/95 level. The U.S. soybean oil price declined to 24.75 cents per pound, its lowest in more than 2 years. The price slide bottomed out in March as oil production tapered off. The lower price provided a 4-percent boost to domestic disappearance of soybean oil to a record 13,450 million pounds. Some of the year's increase in domestic disappearance may be attributed to the building of "invisible stocks" that are held by commercial users of oil. Such stocks may have increased as users took advantage of falling prices. The Census factory consumption data support this premise, because consumption of soybean oil in products was 3 percent below the previous year. U.S. Soybean Oil Exports Slump From China's Withdrawal Despite being one of the world's largest oilseed producing countries, its huge demand makes China the world's largest importer of vegetable oils, purchasing about 3 million tons in 1995/96. The China market is especially important to the United States, as China accounted for nearly half of all U.S. soybean oil exports during 1994/95. But China successfully controlled food inflation in 1995 through heavy oil imports and strong growth in rapeseed, peanut, and cottonseed production. This significantly raised carryin stocks of vegetable oils, eased prices, and greatly limited China's imports for vegetable oils in 1995/96, especially palm and rapeseed oil. U.S. total soybean oil exports were just above 1 billion pounds (down 61 percent from the previous year). Exports to China were down to 299 million pounds from 1,215 million in 1994/95. Last winter, China took most of its soybean oil imports from South America. Since March, U.S. soybean oil prices (fob Gulf) were selling at a premium of over $20 per metric ton above South American soybean oil. China is thought to be draining overbuilt vegetable oil stocks and is expected to resume active buying in 1996/97, primarily palm and soybean oils. Negligible sales to Morocco, Algeria, and Tunisia also dimmed U.S. soybean oil exports in 1995/96. Larger imports of EU rapeseed oil and sunflowerseed oil from the FSU and Argentina dampened demand for soybean oil from these integral North African importers. India's expanding oilseed sector also limited their volume of vegetable oil imports. Stiff competition from palm oil also constrained soybean oil exports to traditional Asian importers. World Oilseed Situation World oilseed production in 1995/96 fell 2 percent from 1994/95's record, to 255.4 million metric tons. This is the first decline in world output in 7 years. The reduced production reflects a 10-percent drop in world soybean output and small decrease in peanut and copra production. Most of the decline in soybean output is due to a 14-percent reduction in 1995 U.S. production, but Brazilian and Chinese output also dropped. Soybeans account for nearly half of world oilseed production and more than 70 percent of global oilseed trade. World oilseed crush climbed to a record 215.3 million tons, up 4 percent from 1994/95. This increase in consumption, combined with smaller production, reduced world oilseed stocks almost one-fifth. Global oilseed trade in 1995/96 fell slightly on lower commerce in soybeans. Trade in protein meals increased 2 percent based on larger soybean meal trade. Global Soybean Production Declines World soybean production in 1995/96 fell to 124.3 million tons from the record 137.8 million in 1994/95. Foreign soybean production declined 4.2 million tons to 65.1 million. A sharp drop in Brazilian soybean prices cut 1995/96 harvested acreage 6 percent. Credit difficulties for farmers also reduced Brazilian soybean production from last year as fewer inputs were applied. And, while crop-saving rains in January prevented a more serious shortfall, dryness from November through December and planting lower yielding short season varieties, reduced yields 5 percent from the 1994/95 record. Despite strong competition for acreage from corn and sunflowers, Argentine farmers expanded double cropping and used more fallow land to plant a record soybean area. But 1995/96 soybean production fell slightly from the previous year's record to 12.6 million tons as dryness lowered yields. China's production of high-oil content seeds was encouraged last year to reduce import dependency and to compensate for soybean area lost to coarse grains, resulting in record rapeseed and peanut crops. Even so, Chinese oilseed production has not kept up with burgeoning domestic consumption. China, which is the world's fourth-largest soybean producer, has provincial policies that discourage interprovincial trade. As a result, China became a net importer of soybeans for the first time and has expanded crush capacity along its coasts, suggesting its intent to remain a net importer. Pro-grain policies supported increased corn area at the expense of soybeans, as well as productivity due to greater input use in grains. China's soybean production fell to 13.3 million tons from 16.0 million in 1994/95. The solid growth in India's soybean industry shows few signs of abating. Area harvested in 1995/96 surpassed the previous high. Yields, although still among the world's lowest, have improved in recent years. A late, but adequate monsoon pushed Indian soybean production to a record 4.5 million tons in 1995/96. Foreign Sunflowerseed, Rapeseed, and Cottonseed Production Rise Foreign sunflowerseed production in 1995/96 was 24 million tons, 13 percent above 1994/95. This large increase was due to much higher acreage and a rebound in yields for the former Soviet Union (FSU). The elimination of export restrictions a few years ago, which exposed FSU farmers to world market prices, encouraged them to expand planting. Argentina harvested a record 3.2 million hectares of sunflowerseed in 1995/96. Argentina, the world's largest single grower of sunflowerseed, produced 5.6 million metric tons. An even larger harvest may have occurred but yields were depressed by dry weather. Although smaller than the record 1994 harvest, Argentina had its second largest crop ever in 1995 and it was 45 percent larger than in 1993. Offsetting the positive growth in these countries was a reduction in sunflowerseed area and yields in the European Union (EU). Spanish sunflowerseed production was nearly halved by a severe drought. World rapeseed production in 1995/96 soared 14 percent above the previous year's record, to 34.5 million tons. China, the EU, India, and Eastern Europe all registered larger harvests. Canadian output fell as more favorable wheat prices and the disease problems fostered by successive years of canola planting discouraged its inclusion again in crop rotations. World Oilseed Crush Climbs Global oilseed crush increased 4 percent in 1995/96 to 215.3 million tons. Crush increased for all oilseeds, except peanuts and copra, which had smaller harvests. Global soybean crush slightly increased to 111.6 million tons. While U.S. soybean crushing declined, Brazil and Argentina accelerated crush rates at the expense of soybean exports and lower stocks because of strong foreign and domestic meal demands. Although a smaller harvest cut China's soybean crush, higher processing of rapeseed, cottonseed, and peanuts countered that decline. India's bumper crops of oilseeds substantially increased crush of soybeans, cottonseed, and rapeseed, which compensated for a poor peanut crush. The EU's larger rapeseed harvest allowed 1995/96 rapeseed crush to increase 4 percent, while EU soybean crush fell 6 percent. Mexico's improving economy helped soybean crush rebound from a mediocre 1994/95 output. The world's protein meal situation tightened in 1995/96 as consumption increased nearly 4 percent while production rose 3 percent to 146.1 million tons. International protein meal prices spiraled upward as a consequence. Reductions in meal use in the EU were balanced by increases from Asia. Despite lower U.S. and EU output, growth in Latin America and India raised global soybean meal production 1.5 percent to 88.6 million tons. World rapeseed meal production surged from 16.5 million tons in 1994/95 to 18.4 million, although the year-to-year increase in world trade was more modest. Higher world supplies of sunflowerseed meal were mostly absorbed by the protein-deficient FSU. World Oilseed Trade Slips International trade in oilseeds dipped to 43.3 million tons in 1995/96, largely because of smaller soybean exports. Global soybean import demand slowed 2 percent to 32.2 million tons. This was in response to greater competition from other indigenous oilseeds (such as sunflower and rapeseed) in major importing countries. The global deficit in vegetable oils in 1994/95 prompted farmers to expand their production of these high oil-yielding crops in 1995. And Brazil's drawback program did not have the same conditions that triggered 710,000 metric tons of soybean imports from the United States in 1994/95. Palm oil, the world's largest traded oil, had a healthy production increase of 5 percent. Larger rapeseed crops in Europe and Australia reduced the need to crush as many imported soybeans to satisfy oil requirements. Larger area planted and robust yields pushed India's production of soybeans and rapeseed to record highs. Bumper sunflowerseed harvests in the FSU and Eastern Europe also contributed to less tightness in the world edible oil market. The decline in China's oilseeds production, along with increasing demand for soybean meal, pushed Chinese soybean imports to 700,000 tons, up from 150,000 in 1994/95. The United States shipped 423,000 tons to China. In 1993/94, China exported more than 1 million tons of soybeans (mostly to Asian markets). But by 1995/96, Chinese soybean exports drastically declined to only 300,000 tons. Several Asian countries switched from China to the United States for soybeans. Growth in world soybean meal demand slowed to just 2 percent above 1994/95 to 88.6 million tons. Imports by Asian nations, particularly China, were behind much of the expansion in 1995/96 world imports to 32.3 million tons. China's soybean meal exports sharply fell as their internal consumption grew rapidly. Factors influencing China's emergence as a net soybean meal importer included falling domestic soybean meal production, rising production of meat, and reduced import tariffs. India has largely replaced Chinese soybean meal exports to the rest of Asia. On the other hand, EU protein meal imports slipped as livestock were fed more wheat. Higher import costs and better domestic protein meal supplies kept the struggling FSU livestock sector from increasing soybean meal imports. World Vegetable Oil Situation Global production of edible oils in 1995/96 was 71.6 million tons, with soybean oil accounting for the largest share (28 percent). The increase was based largely on greater production of rapeseed, sunflowerseed, and palm oils. Vigorous rapeseed crush throughout the world hiked global rapeseed oil production 11 percent to 11.1 million tons. But the improved rapeseed harvests were in countries that are major consumers of rapeseed oil, causing world rapeseed oil trade to fall in 1995/96. A large Russian harvest motivated a surge in global production and consumption of sunflowerseed oil for 1995/96, to 8.7 and 8.6 million tons, respectively. However, world trade in sunflowerseed oil stalled as sunflowerseed trade took greater precedence. Ending stocks of sunflowerseed oil climbed as production outstripped consumption. The poor peanut crop in India, which is the country's largest source of vegetable oil, slowed total peanut oil production and consumption. Global palm oil production in 1995/96 was 15.6 million tons, which is another peak in a long upward trend. Palm oil now accounts for 22 percent of world vegetable oil production, compared with 17 percent a decade earlier. Malaysia accounted for more than half of the world total with 8.2 million tons. Indonesia, the other major producer, contributed 4.5 million tons to world supplies, up from 4.2 million the previous year. Global palm kernel oil production rose 4.5 percent to 2.1 million tons. However, Indonesian palm oil production in recent years has closed the gap and may exceed Malaysian production within a few years. Indonesian output has increased 12 percent per year since 1985/86, compared with 5 percent annually in Malaysia. Although many Malaysian rubber plantations are being converted to oil palm, other countries have more potential to expand new area than Malaysia. Many companies (including several Malaysian firms) have been rapidly raising investment into land development for Indonesian oil palm plantations. Similar joint ventures are also being planned in China, the Philippines, Pakistan, Mexico, and Bangladesh. Interest in cultivating oil palm plantations in Latin America has only just begun, with Colombia emerging as the world's fourth largest producer. World palm oil exports in 1995/96 increased just 3 percent to nearly 10 million tons. Indonesia was entirely responsible for the growth, as Malaysian exports stagnated. Growth in domestic use of palm oil, aided by increased export duties, has been even more rapid than production in both countries. Indonesia taxes refined palm oil exports to encourage a higher domestic food supply. Malaysia is developing a major palm oil-based oleochemicals industry. The surge in palm oil production in 1995/96 came after an already substantial inventory. Palm oil prices fell from $651 per ton (FOB Malaysia) in 1994/95 to $525 per ton. To further depress the market, the key palm oil importers, China and Pakistan, reduced imports as their own supplies of cottonseed oil rose. World ending stocks of palm oil for 1995/96 continue to weigh down world vegetable oil prices. World coconut oil production sagged 8 percent in 1995/96 to 3.2 million metric tons, but had recovered somewhat near the end of the marketing year. This perpetuates the sluggish growth over the last 10 years that has allowed palm kernel oil to vastly improve its market share versus coconut oil for all lauric oils. Coconut oil currently accounts for about 4 percent of world vegetable oil production and 6 percent of world vegetable oil imports. The production drop was due to 3 typhoons that, in late 1995, heavily damaged 100 million coconut trees in the Philippines, the world's leading producer. A dedicated replanting program has begun but will take 3-5 years for output to rise again. Indonesia, the other major world producer, exports a comparatively small amount because of its large domestic consumption. Prices for coconut oil at Rotterdam last summer soared above $800 per metric ton, well over the 1994/95 average of $656. World importers, mainly comprised of the EU and United States, reduced purchases 12 percent to 1.6 million tons. World olive oil production for 1995/96 sank to 1.5 million tons, the lowest since 1981. EU output, which normally accounts for 75 percent of world production, fell 13 percent. Spanish producers continued to suffer from a lengthy drought. Secondary producers, such as Tunisia and Turkey, also failed to raise production. Much of the decline in 1995/96 trade and consumption occurred among EU countries. Situation for Other U.S. Oil Crops U.S. Cottonseed Review, 1995/96 As a byproduct of cotton lint production, the supply of cottonseed in the United States responds primarily to the demand for cotton lint and is heavily influenced by provisions of the United States Government cotton program. The 1995/96 U.S. cotton crop was the last produced under the cotton program provisions of the 1990 Food, Agriculture, Conservation, and Trade Act. Under the 1990 act, annual acreage planted to cotton was largely determined by the level of the acreage reduction program (ARP), which was set prior to each season by USDA and based upon expected lint offtake and ending stocks in the subsequent season. In the 1995/96 season, the upland cotton ARP was set at 0.0 percent, based on the strong levels of mill use and exports expected in the 1995/96 season and a tight stocks-to-use situation at the close of the 1994 season. The 0.0 percent ARP permitted program participants to plant all of their upland program acreage and still be eligible to receive program benefits. Total cotton area in 1995/96 was 16.93 million acres, up 23.4 percent from the 13.72 million planted in the 1994/95 season, when the upland ARP had been set at 11.0 percent. U.S. Cottonseed Supply, 1995/96 Production With 1995/96 cotton planted area up sharply from 1994's record lint crop producing plantings and the largest since the 1956 season, a potential record cottonseed crop seemed at hand. The initial survey-based 1995/96 cottonseed production estimate in August 1995 indicated a record crop of 8.408 million short tons. However, in September, USDA lowered the forecast to 7.819 million; in October to 7.374 million; in November to 7.259 million; in December to 7.021; and in January to 6.925 million. In May 1996, USDA further reduced the 1995/96 cottonseed production estimate to its current 6.849 million tons. In the 1995/96 season, an initially promising cotton crop was subsequently beset with numerous production problems. In the Delta States, production fell due to drought, extreme high temperatures, and tremendous insect pressure. In the Southeast, hot dry conditions caused poor crop development while excessive rains during the fall caused high boll losses. In the West, early-season rains and cool temperatures in Arizona and California delayed plantings and reduced yields. In Texas, plantings were delayed by dry weather, followed by heavy rains and hail in June, and in September in West Texas, the heaviest rainfall in 60 years. By region, U.S. cottonseed production in the 1995/96 season rose 4.6 percent in the Southeast, declined 13.8 percent in the Delta States, declined 14.8 percent in the Southwest, and declined 8.1 percent in the West, from 1994 production (table B). Nationally, cottonseed production in 1995/96 declined 9.9 percent from the 1994/95 season. Total Supply The 6.849-million-ton U.S. cottonseed crop in the 1995/96 season, combined with 551,000 tons of beginning stocks, resulted in a total supply of cottonseed of 7.399 million tons, 7.9 percent below the previous season's supply. With a smaller supply of cottonseed in 1995/96, the high level of total use in the 1994/95 season could not be maintained. U.S. 1995/96 Cottonseed Offtake Crush U.S. cottonseed crush in 1995/96 totaled 3.861 million short tons, 2.2 percent below the previous season. Cottonseed crush began the 1995/96 season at a torrid pace in August and September, when seasonally-adjusted annual rates were in the 4- to 5-million ton range. Crush thereafter followed a more normal seasonal pattern, peaking at 402,261 tons in January and declining in absolute volume in the following months. However, beginning in June, crush rates plummeted and the season-total forecasts were reduced accordingly. The drop in crushing levels occurred despite oil-and-meal values well above same period, year-earlier values. Weakening oil demand and lower prices were cited as causal factors for the crushing decline. In the 1995/96 season, generally weaker oil prices were more-than-offset by sharply higher meal prices, elevating product values above the previous season. In several months of the 1995/96 season, cottonseed meal prices were more than double their year-earlier levels. Cottonseed crush in 1995/96 represented 56.4 percent of production, a sharp reversal in the longer term trend of a falling crush share. While crush fell from the previous season, the addition of crushing capacity during the 1995/96 season likely mitigated further decline. The availability of new capacity in areas of recent expansion in cotton planting may elevate future crush levels and crushing share of total use. Other use "Other use" of cottonseed, primarily whole seed feeding, is a rapidly growing component of offtake, hitting a record 3.306 million tons in the 1994/95 season. In the 1995/96 season, other use totalled 2.929 million tons, 11 percent below the 1994 total. With the prices of competing feeds, such as corn and soybean meal, much higher in the 1995/96 season than in the 1994/95 season, the value of cottonseed for feed surged as well. Had supplies been more abundant in the 1995/96 season, this component of use would likely have been much higher. Nonetheless, 1995 "other use" of cottonseed attained its second highest level on record. Exports Exports of cottonseed are usually a much smaller component of total offtake than either crush or other use, and this was the case again in the 1995/96 season. Historically, the vast majority of U.S. cottonseed exports are shipped to Mexico. Higher cottonseed prices in the 1995/96 season, intense competition among other uses, and weaker demand from Japan and South Korea contributed to a 51-percent decline in exports in the 1995 season to 114,000 short tons. Total offtake Total use of cottonseed in the 1995 season was 6.904 million tons, 7.8 percent below the previous season. While supplies were tighter in the 1995 season, ending stocks were not drawn down to levels that had been anticipated earlier in the season. Stocks of cottonseed on July 31, 1996 were reported at 495,000 short tons. The average farm price for U.S. cottonseed in the 1995/96 season was $107 per short ton, compared with $101 in the 1994 season. Farm prices, determined primarily in the harvest months, may have averaged higher if the eventual size of a deteriorating cottonseed crop had been apparent earlier in the season. Cottonseed Oil and Meal In the 1995/96 season, cottonseed oil production is forecast at 1.213 billion pounds, 7.5 percent below last season. With final data not yet available, domestic use of cottonseed oil is forecast at 990 million pounds, down 1.5 percent from the 1994 season. Exports are forecast to total 206 million pounds. Cottonseed oil prices averaged 26.5 cents per pound (PBSY, basis Greenwood, MS), compared with a 29.2-cent average in the 1994 season. A weakening in late-season prices lowered the season average. Cottonseed meal production in 1995/96 is pegged at 1.723 million short tons. The domestic market again accounted for the vast majority of use and is expected to consume 1.625 million tons. Exports are expected to total 105,000 tons. High prices for other protein meals in the 1995 season boosted cottonseed meal prices in the 1995/96 season to $190.74 per short ton, compared with the low $112.02-average last season. U.S. Peanut Review, 1995/96 The 1995/96 U.S. peanut crop was the last produced under the auspices of the peanut program outlined in the 1990 Food, Agriculture, Conservation and Trade (FACT) Act. That program, devised at a time of remarkable prosperity for the U.S. peanut industry, was incapable of addressing the problems that confronted the industry going into the 1995/96 season. Further, a relatively minor peanut program provision of the 1990 FACT Act, the minimum national quota poundage of 1.35 million short tons, virtually assured that the 1995/96 season would be a replay of the preceding season--a highly undesirable situation going into deliberations on new farm legislation. The industry environment preceding the 1995/96 crop year was characterized by: 1) a protracted and precipitous decline in peanut consumption; 2) surplus production of quota peanuts; and 3) uncharacteristically high costs associated with operation of the marketing loan provision of the 1990 FACT Act. One of the supply uncertainties going into the 1995/96 peanut season, aside from the potential for a weather-related production shock, was the future impact of increased access to the U.S. edible peanut market of foreign-produced peanuts, granted in recent trade agreements. However, it seemed certain that imports, at whatever level, would likely only exacerbate an already redundant supply of U.S. quota peanuts. The U.S. 1995/96-crop Government peanut program parameters included: 1) announcement of a national quota poundage at the minimum allowable 1.35 million short tons, unchanged from the previous year (USDA had calculated the formula quota poundage to be 1,293,100 short tons); and 2) a national average support level for quota peanuts of $678.36 per short ton, unchanged from the previous year. Similar program provisions for the 1994-crop peanuts had contributed to a large excess of quota peanuts, evidenced by the placement of 295,384 tons of quota peanuts under loan, and large taxpayer outlays associated with disposal of these peanuts, estimated to total near $120 million. U.S. Peanut Supply, 1995/96 Production U.S. peanut production in the 1995/96 season totaled 3.46 billion pounds, in-shell basis, 18.5 percent below 1994's outturn. Planted and harvested area were 1.54 and 1.52 million acres, respectively, each down 6 percent from the previous year--and the lowest since the 1985 season. Generally, growing conditions in the 1995/96 season were not good. Hot and dry conditions in the Southeast (AL, FL, GA, and SC) during the critical summer months reduced crop prospects. In the Virginia-North Carolina region, extreme temperatures and very dry conditions contributed to the small crop. In the Southwest (NM, OK, and TX), poor yields (table B) and a reduced dryland crop in Texas contributed to a 14.5-percent decline in production and below-average grades, especially in later fields. Imports Under Section 22 import quota provisions, U.S. peanut imports were limited to about 2.3 million pounds, in-shell basis, annually. However, under the NAFTA and General Agreement on Tariffs and Trade (GATT) this restriction was significantly reduced. In the 1994/95 peanut season, imports of foreign peanuts totalled 74 million pounds, in-shell, even though the allowable quantity could have raised that amount much higher. Peanut imports in the last months of the 1994/95 season were slower than expected and import quotas were not immediately filled, such that peanut imports continued to arrive at a strong pace in the first months of the 1995/96 season. When new import quotas were opened on April 1 of the 1995/96 season, they were filled very quickly. In April 1996 alone, 68.4 million pounds, in-shell basis, of peanut imports entered the United States. Thus, the combined effect of the push-back of potential 1994/95 peanut imports and the quick filling of the latest quota to open, was to propel 1995/96 U.S. peanut imports to 153 million pounds, in-shell basis. Total Supply While production in the 1995/96 season was down 18.5 percent from 1994, imports and a high level of beginning stocks boosted total supply to 4.812 billion pounds, in-shell, 10.5 percent below the previous season. Beginning stocks on August 1, 1995 were 1.198 billion pounds, nearly 13 percent ahead of a year earlier. The abundant supply of peanuts, and declining food demand, suggested continued historically high levels of crush and exports in the 1995/96 season, much like the 1994/95 season. U.S. Peanut Offtake, 1995/96 Domestic Food Use Early-season prospects for domestic food use of peanuts in 1995/96 were not particularly promising. The 1994/95 season had yielded a nearly 80-million-pound decline in food use to 2.009 billion, in-shell basis. Since peaking in the 1989/90 season at a record 2.312 billion pounds, food use had fallen by 303 million. The 1995/96 season produced another decline in domestic food use, but a much more modest decline than in previous seasons. Domestic food use, comprised of domestic-origin and foreign peanuts, totalled 1.993 billion pounds, in-shell, in the 1995/96 season, only 16 million below the previous season. Data on peanut use in primary products for the 1995/96 season revealed peanut use in candy rising by 0.3 percent, use in snack peanuts down 8.2 percent, use in peanut butter rising by 2.6 percent, and use in the small "other" category falling by 13.1 percent. The increase in peanut use in the important peanut butter category, which usually represents half or more of all peanut primary product use, was expected. Forecasts of increasing peanut butter use were based on an expected slowing of previous seasons' precipitous decline in government purchases of peanut butter, recent increases in non-government purchases, expected stability of peanut butter imports, and a continuing decline in the price of peanut butter. The 8.2-percent drop in snack peanut use in 1995/96 was surprising, inasmuch as it followed a 13.5-percent drop in the 1994/95 season and use had been expected to rebound. Snack peanut use had historically been a relatively stable offtake category. However, a couple of snack peanut manufacturers had exited the business, with some industry analysts citing comparatively high input costs, declining profit margins, and changes in consumers' tastes and preferences as casual factors. While domestic food use of peanuts exhibited a modest decline in the 1995/96 season, it masked a much more pronounced decline in domestic food use of domestic-origin (quota) peanuts. Owing to the overall decline in total edible peanut food use and the surge in imports to 153 million pounds, domestic food use of quota peanuts in the 1995/96 season fell to 1.840 billion pounds, compared with 1.935 billion in the 1994/95 season. With U.S. quota peanuts in an already abundant supply situation, imports of foreign-produced peanuts for food use placed more quota peanuts into the government loan program. In the 1995/96 season, quota peanuts placed in the loan program reached 329,855 short tons. Significant costs were incurred in the disposal of these surplus peanuts. Crush and Exports Abundant supplies of U.S. peanuts in the 1995/96 season drove both peanut crush and exports to high levels. Early-season forecasts had suggested that both might decline modestly from their elevated 1994/95 season totals. However, final data for the 1995/96 season placed peanut crush at 999 million pounds, in-shell, and exports at 824 million, up 1.7 percent and down 6.2 percent, respectively, from the previous season. Peanut crush in 1995/96 was aided by strong product prices, particularly later in the August-July season. During the last quarter of the 1995/96 season, the oil and meal value of products per short ton of shelled peanuts crushed ranged from $490 to $499, compared with a $409- to-$413 range a year earlier. For the entire 1995/96 season, the value of peanut oil and meal per shelled ton crushed averaged $451.6, compared with an average of $449.6 in the 1994/95 season. Total Offtake With food use off only modestly and relatively strong levels of peanut crush and exports in the 1995/96 season, total use fell only 3.1 percent from 1994/95 to 4.054 billion pounds, in-shell. However, ending stocks on July 31, 1996 fell to 758 million pounds, 36.7 percent below their beginning stocks and the lowest since the 1990/91 season. While the quota peanut support rate in 1995/96 remained at 1994's $678.36 per ton level, the average price received by farmers for peanuts in 1995/96 increased slightly to 29.3 cents per pound. The abundant supply of quota peanuts in 1994/95 and 1995/96 continued to depress prices below those of previous seasons, even though the quota support price was higher. Peanut Oil and Meal Although season-average oil and meal values per ton of peanuts crushed changed relatively little between the 1994 and 1995 seasons, the prices of the products changed markedly, along with their respective contributions to the total crush value. In the 1994 season, peanut oil had averaged a strong 44.3 cents per pound and meal an extremely weak $128.94 per short ton. In the 1995 season, oil prices averaged 40.3 cents and peanut meal surged to an average of $190.92 per short ton. In the 1994 season, peanut oil comprised 84 percent of the oil-and-meal value of products. In the 1995 season, its share fell to 76 percent. An abundance of other vegetable oils in the 1995/96 season helped hold down peanut oil prices, while high prices for competing feeds caused peanut meal prices to surge to levels occasionally more than 100 percent above the same period a year earlier. Domestic use of peanut oil in 1995/96 was 192 million pounds, about the normal long-term average for domestic use. Exports totalled 108 million as a large crush provided ample exportable supplies. Peanut meal domestic use in the 1995/96 season was 181,000 short tons, with exports totalling 32,000 tons. In 1995/96, as is usually the case, the vast majority of peanut meal production was consumed domestically. Sunflowerseed Smaller Sunflower Yield and Acreage Cuts Production and Use Sunflower acreage declined in 1995 as expected returns for both spring wheat and barley were comparatively favorable and neither had a set-aside requirement. Acres planted to oil-type sunflowers were 2.9 million, down 4 percent from 1994, while acreage of the non-oil type was 567,000 acres, up 8 percent. Planted acres in North Dakota declined in 1995 by 140,000 acres. North Dakota continued to dominate U.S. sunflower acreage with 1.45 million acres seeded (42 percent of U.S. planted acreage). Minnesota is the only other sunflower producing State where planted area decreased in 1995, from 500,000 to 440,000 acres. The 1995 U.S. sunflower yield dropped from 1994's bumper yield to 1,190 pounds per acre because of poorer growing conditions in all major producing States. An abnormally wet spring delayed planting, a wet summer contributed to more severe disease problems, and a late September frost shortened the growing season. Harvested area of all sunflower types in 1995 was nearly 3.4 million acres. Production fell to 4,009 million pounds, down 17 percent from the ample 1994 harvest. However, September 1 carryin stocks of 227 million pounds were up 46 percent from a year earlier. Despite these relatively abundant supplies, a softer oil market this year limited crushing to 1,935 million pounds, down 959 million from the 1994/95 record. Sunflowerseed oil prices sank with the rest of the vegetable oil complex, to 25.4 cents per pound from 28.2 cents in 1994/95. Mounting supplies of European rapeseed and sunflowerseed from Argentina, Ukraine, and Russia prevented U.S. exports of sunflowerseed and oil from rising in 1995/96. Although down 27 percent from 1994/95, U.S. exports of sunflowerseed remained healthy at 461 million pounds, aided by enduring strength in confectionary seed exports. Domestic non-oil uses, such as birdfood, increased 9 percent from 1994/95 to 1,457 million pounds. Total seed demand was nearly 1 billion pounds less than last year, so carryout stocks increased to 448 million pounds. Prices for sunflowerseed were considerably higher in 1995/96, rising to an average $11.60 per hundredweight, but lagged well behind soybean and grain price increases. Sunflowerseed farm prices soared late in the crop year to above $14 per hundredweight. Production of sunflower oil for 1995/96, at 775 million pounds, was one-third less than the 1994/95 record. U.S. sunflower oil exports, which accounted for up to 80 percent of total demand in recent years, dropped from 978 million pounds in 1994/95 to 628 million. Cutbacks in purchases by both major U.S. markets, Mexico and Algeria, accounted for the downturn. While the reduced crush also curtailed sunflower meal supplies, the soybean meal situation had the largest influence on sunflower meal prices. The brisk market for protein meals boosted sunflower meal prices to record highs. The 1995/96 average of $124 per short ton exceeded the previous high set in 1988/89 and was well above 1994/95's $65 per ton. Other Special Oilseeds Highlights Canola Planted acreage for canola in 1995 surged to 445,000 acres, up 26 percent from 1994. Total U.S. production reached a record 547 million pounds and nearly equalled imports (558 million pounds) as a source of supply. Inedible rapeseed production was just 3 million pounds from 2,400 acres harvested. Domestic canola crush in 1995/96 was 899 million pounds, unchanged from the previous year. U.S. seed exports were 138 million pounds, down 40 percent from 1994/95. Flaxseed U.S. flaxseed planted area continued its long-term decline in 1995, dropping to 165,000 acres, down from 178,000 the previous year. North Dakota, the top producing State, continues to lose flaxseed area to other crops. Yield per acre averaged 15.0 bushels in 1995, the lowest since 1989. Total production fell 24 percent to 2.2 million bushels, with a total crop value of just $11.4 million. Imports from Canada, totaling 7.3 million bushels in 1995/96, made up the bulk of U.S. supplies. Much tighter supplies from Canada (the world's largest producer) helped drive U.S. flaxseed, linseed meal, and linseed oil prices upward. Corn Oil Corn oil has fallen to third place for the amount of edible oil consumed in the United States, behind soybean oil and tallow. Spiraling corn prices slowed wet milling of corn in the spring of 1996, while falling vegetable oil prices further trimmed corn milling margins. Corn oil production in 1995/96 fell 6 percent to 2,080 million pounds. Annual growth in domestic disappearance of corn oil was 4 percent, raising offtake to 1,280 million pounds. The exceptional growth of U.S. corn oil exports in recent years stalled in 1995/96 at 875 million pounds, unchanged from the previous season. Despite further growth from the EU, corn oil exports to major markets in Mexico and the Middle East contracted. The corn oil price averaged 25.2 cents per pound in 1995/96. This price is less than a half-cent per pound over the price of soybean oil, which is smaller than the typical 4-5 cent premium of previous years. Imported Oils With rising supplies, world palm oil prices fell through spring of 1996 as major palm oil importers cut back on their imports. By summer, U.S. import prices had declined to about 24.5 cents per pound from 32.6 cents a year earlier. The less costly prices stimulated a jump in U.S. palm oil imports of 22 percent from 1994/95 to 265 million pounds. World coconut oil production sagged in 1995/96 as copra production fell 8 percent. This drove U.S. import prices for coconut oil much higher, to 43-45 cents per pound. Lauric oil users began to substitute with cheaper palm kernel oil. U.S. 1995/96 coconut oil imports fell 14 percent to 948 million pounds, while palm kernel oil imports rose 6 percent to 298 million pounds. The United States accounts for about one-third of world coconut oil imports. Already trending upward for several years, olive oil prices soared to record highs in 1995/96, with U.S. import unit values averaging about $1.77 per pound. Import prices were 60 percent higher than in 1994/95. Despite the large premiums, U.S. olive oil imports were scaled back just 10 percent from 1994/95 to 254 million pounds. Animal Fats Higher slaughter rates increased tallow production to 1,555 million pounds. This let prices drop to around 21 cents per pound by late 1995. Tallow prices also softened as U.S. tallow exports weakened, particularly to Mexico. However, tallow prices increased to 25-27 cents per pound by summer. A major reason for the turnabout was that livestock feed use of tallow climbed as it substituted for a portion of increasingly expensive feed grains. Domestic disappearance in 1995/96 increased 6 percent to 1,340 million pounds. Lard prices bulged to about 26 cents per pound last summer from 21 cents last fall. It is very unusual for lard prices to exceed soybean oil prices. But the sharp decline in hog slaughter amid robust feed demand largely explains the rise. Comparatively expensive feed costs reduced hog slaughter weights from recent years, which also curtailed lard yields from packing houses. Lard production fell 4 percent to 1,010 million pounds. Domestic disappearance fell 2 percent in 1995/96 to 905 million pounds, as greater livestock feed use failed to completely offset a reduction in lard consumption by humans. Rising lard prices also slowed export demand (primarily Mexico) about one-third from 1994/95's 145 million pound record. End Uses of Fats and Oils Swelling prices rationed use in the oils market in 1995. Edible use of all oils declined 2 percent to 15,056 million pounds. Consumption of soybean oil for edible products, at 12,049 million pounds, declined 1 percent from 1994. Total production of baking and frying fats declined 6 percent to 5,975 million pounds. Of that amount, soybean oil contributed 4,673 million pounds, which was 5 percent lower than in 1994. In January, the Food and Drug Administration approved the use of the fat-substitute Olestra. The product's developer, Procter & Gamble, is now test marketing it. Since vegetable oil is a major raw material in the substitute's production, the likely expansion in snack food consumption should raise net vegetable oil disappearance. Actual consumption was negligible for 1995/96, although the product may have played a role in the buildup of invisible oil stocks (held by end users) for 1996/97 consumption. Margarine production again declined in 1995, down 5 percent to 2,490 million pounds. Total consumption of margarine last year was the smallest since 1984. Consumption of soybean oil for margarine fell 6 percent to 1,684 million pounds. By comparison, U.S. butter production also fell in 1995, declining 3 percent to 1,254 million pounds. Dairy farmers, unwilling to pay high corn prices to feed their herds, have slaughtered cows instead, which has helped raise dairy prices. Butter prices surged in the spring of 1996, almost double what they were in mid-1995. While commercial butter disappearance increased slightly in 1995, USDA removals declined dramatically, as exports under the Dairy Export Incentive Program were more than halved. Yearending butter stocks dropped to 19 million pounds, the lowest since 1975. The 1996 farm legislation will allow milk price supports to fall by the decade's end, which may aid growth in butter consumption. In 2000, a recourse loan program for butter will be implemented. The sole area of growth in the vegetable oils market last year was for salad and cooking oils, which is already the largest channel for oil consumption. U.S. production of salad and cooking oils was up nearly 3 percent in calendar 1995 to a record 6,725 million pounds. Consumption of soybean oil for salad and cooking oils increased nearly 5 percent to 5,473 million pounds, as soybean oil raised its share versus those of competing oils, particularly cottonseed and olive. Consumption of oils for inedible uses (fatty acids, feed, lubricants, etc.) also declined last year. Use of soybean oil in inedible products dropped 4 percent to 305 million pounds. LIST OF TABLES Text tables A. World vegetable oil production, 1993/94-1996/97 B. U.S. cottonseed production estimates, by State and region, 1993-95 C. Peanuts for nuts: Area harvested, yield, and production by State, and United States, 1994-95 D. All type sunflowers: Area planted, and harvested by State, 1994-96 E. Minor oilseeds: Planted and harvested acres, U.S. 1993-96 Appendix tables 1. Soybean stocks: On-farm, off-farm, and total U.S., by quarter, 1981/82- 1995/96 2. Soybeans: Acreage planted, harvested, yield, production, value, and loan rate, U.S., 1955/56-1996/97 3. Edible fats and oils: Supply and disappearance, U.S., 1984/85-1996/97 4. Peanuts: Acreage planted, harvested, yield, production, and value, U.S., 1965/66-1996/97 5. Peanuts: (farmers' stock basis) Supply, disappearance, and price, U.S., 1975/76-1996/97 6. Corn oil: Supply, disappearance, and price, U.S., 1976/77-1996/97 7. Corn oil: Supply and disappearance, by month, U.S., 1993/94-1995/96 8. Flaxseed: Acreage planted, harvested, yield, production, and value, U.S., 1965/66-1996/97 9. Flaxseed: Supply, disappearance, and price, U.S., 1966/67-1996/97 10. Linseed meal: Supply and disappearance, U.S., 1966/67-1996/97 11. Linseed oil: Supply, disappearance, and price, U.S., 1966/67-1996/97 12. Soybeans: Supply, disappearance, and price, U.S., 1965/66-1996/97 13. Soybean meal: Supply, disappearance, and price, U.S., 1965/66-1996/97 14. Soybean oil: Supply, disappearance, and price, U.S. 1965/66-1996/97 15. Soybeans: Supply and disappearance, by month, U.S., 1991/92-1995/96 16. Soybean meal: Supply and disappearance, by month, U.S., 1991/92-1995/96 17. Soybean oil: Supply and disappearance, by month, U.S., 1991/92-1995/96 18. Soybean product prices, by month, U.S., 1991/92-1995/96 19. Soybeans: Monthly value of products per bushel of soybeans processed, and spot price spread, U.S., 1987/88-1995/96 20. Supply and use: Soybeans, soybean meal, and soybean oil, U.S., major foreign exporters, importers, and world, 1993/94-1996/97 21. Cottonseed: Acreage planted, harvested, yield, production, and value, U.S., 1965/66-1996/97 22. Cottonseed: Supply, disappearance, and price, U.S., 1975/76-1996/97 23. Cottonseed meal: Supply, disappearance, and price, U.S., 1965/66-1996/97 24. Cottonseed oil: Supply, disappearance, and price, U.S., 1965/66-1996/97 25. Cottonseed: Supply and disappearance, by month, U.S., 1993-1996 26. Cottonseed meal: Supply and disappearance, by month, U.S., 1991/92- 1995/96 27. Cottonseed oil: Supply and disappearance, by month, U.S., 1991/92-1995/96 28. Cottonseed: Products and prices, by month, U.S., 1991/92-1995/96 29. Sunflowerseed: Acreage planted, harvested, yield, production, and value, U.S., 1965/66-1996/97 30. Sunflowerseed: Supply, disappearance, and price, U.S., 1977/78-1996/97 31. Sunflowerseed meal: Supply, disappearance, and price, U.S., 1977/78- 1996/97 32. Sunflowerseed oil: Supply, disappearance, and price, U.S., 1977/78- 1996/97 33. Sunflowerseed: Supply and disappearance, by month, U.S., 1990/91-1995/96 34. Sunflowerseed oil: Supply and disappearance, by month, U.S., 1991/92-1995/96 35. Sunflowerseed meal: Supply and disappearance, by month, U.S., 1991/92-1995/96. 36. Canola seed: Supply and disappearance, U.S., 1988/89-1996/97 37. Canola oil: Supply and disappearance, U.S., 1988/89-1996/97 38. Canola meal: Supply and disappearance, U.S., 1988/89-1996/97 39. Fats and oils used in edible products, by use, U.S., 1987/88-1995/96 40. Prices: Farm, wholesale, and index numbers of wholesale prices, U.S., by month, 1990-1996 41. Fats and oils: Domestic consumption in food products, U.S., 1975-1995 42. Fats and oils: Use in selected industrial products, U.S., 1975-1995 43. Salad and cooking oils: Supply and disappearance, U.S., 1975-1995 44. Salad and cooking oils: Fats and oils used in manufacture, U.S., 1975-1995 45. Baking and frying fats: Supply and disappearance, U.S., 1975-1995 46. Baking and frying fats: Fats and oils used in manufacture, U.S., 1975-1995 47. Margarine (actual weights): Supply and disappearance, and price, U.S., 1975-1995 48. Margarine: Fats and oils used in manufacture, U.S., 1975-1995 49. Lard: Supply, disappearance, and price, U.S., 1975-1995 50. Butter (actual weight): Supply, disappearance, and price, U.S., 1975-1995 51. Edible tallow: Supply, disappearance, and price, U.S., 1975-1995 52. World oilseed production, 1991/92-1996/97 END-OF-FILE