Freight Costs Raise U.S. Grain Prices into Japan

Rising transportation costs are increasing the price of U.S. corn and soybeans delivered to Japan, adding pressure to export competitiveness.

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Bruce Ikenberry

NASHVILLE, Tenn. (RFD News) — Higher transportation expenses increased the cost of delivering U.S. corn and soybeans to Japan during the second quarter, adding pressure to export competitiveness even as farm-level commodity values remained mixed. USDA says Gulf-route transportation costs jumped 33% from a year earlier.

For corn shipped through the Gulf, transportation cost about $3.43 per bushel, and total landed cost reached roughly $7.48. Through the Pacific Northwest, transportation was about $2.91 per bushel and landed cost was approximately $6.96.

Soybean landed costs reached about $14.61 per bushel through the Gulf and $14.27 through the Pacific Northwest. Higher ocean, barge, rail and truck rates contributed to the increase.

U.S. second-quarter corn exports to Japan totaled about 142 million bushels, down 15% from last year. Soybean shipments totaled about 18 million bushels, up 4%.

USDA expects total U.S. corn exports to decline 4% in 2026/27, while soybean exports are projected to increase 9%, making transportation efficiency increasingly important for maintaining overseas demand.

Farm-Level Takeaway: Higher freight costs can weaken U.S. grain competitiveness even when farm prices remain attractive to foreign buyers.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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