NASHVILLE, Tenn. (RFD-TV) — U.S. grain transportation showed mixed but generally supportive signals in early December as rail volumes strengthened, barge movement rebounded, and fuel costs eased. Higher rail originations and lower diesel prices are helping offset seasonal logistical challenges for producers and shippers.
Class I railroads originated more than 30,700 grain carloads for the week ending December 6, up 20 percent from the prior week and well above both last year and the three-year average. Shuttle railcar premiums declined from the previous week but remain elevated compared with a year ago, while non-shuttle markets softened below tariff levels, signaling improved near-term availability.
Barge traffic also recovered sharply. Grain movements totaled nearly 888,000 tons, up 62 percent week over week, as more barges moved downriver. However, unloadings in the New Orleans region fell, reflecting lingering river and weather-related constraints.
Export loading remained slower than last year, with fewer vessels scheduled at Gulf terminals, though ocean freight rates to Japan edged lower from both Gulf and Pacific Northwest origins. Diesel prices declined nearly six cents per gallon, offering modest cost relief.
Hunter Biram, an extension economist with the University of Arkansas, is tracking Mississippi River water levels as grain shippers shift their focus to transportation following the wrap-up of fall harvest.
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Lewis Williamson with HTS Commodities shares an update on post-WASDE grain movement, with corn leading export momentum, soybeans steady, and wheat and sorghum continuing to move selectively.
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China still has a long way to go before it meets its commitment to buy 12 million metric tons of U.S. soybeans this year.
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Ethanol markets remain mixed — weaker production and blend rates are being partially balanced by stronger exports as winter demand patterns take shape.
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Tariff relief may soften grocery prices, but it also intensifies competition for U.S. fruit, vegetable, and beef producers as cheaper imports regain market share.
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USMEF’s Jay Theiler discusses his leadership role in representing U.S. beef and pork and provides an update on this week’s conference in Indianapolis.
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As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
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