NASHVILLE, Tenn. (RFD NEWS) — Grain transportation signals were mixed in the latest weekly update, with rail demand strengthening while barge movement slowed. U.S. Class I railroads originated 30,610 grain carloads for the week ending May 2, up 3 percent from the previous week.
Rail volume was also 17 percent above last year and 21 percent above the three-year average. Shuttle secondary railcar bids averaged $596 per car above tariff, up $142 from the previous week and $705 above the same week last year.
River movement weakened. Barged grain movements totaled 635,575 tons for the week ending May 9, down 10 percent from the previous week and 14 percent below last year. Downbound barge traffic also fell, with 418 barges moving downriver.
Ocean demand remained firm. Gulf elevators loaded 29 grain vessels for the week ending May 7, up 32 percent from last year, with 48 more expected within 10 days.
Diesel remains expensive at $5.639 per gallon, the morning of May 18, which is more than $2.16 above last year.
Farm-Level Takeaway: Strong rail and ocean demand support grain movement, but weak barge traffic and high diesel costs keep freight pressure elevated.
Tony St. James, RFD News Markets Specialist
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