Grain Transportation Mixed as Costs Edge Higher Nationwide

Adequate transportation capacity exists, but fuel costs and soft river demand could widen basis risk.

Gail_Starkweather_10_22_15_USA_IA_Starkweather_Farm_051.jpg

Starkweather Farm

FarmHER, Inc.

LUBBOCK, Texas (RFD NEWS)Grain movement remains active across export channels, but uneven demand and rising fuel costs are shaping marketing opportunities heading toward spring delivery windows.

Railroads originated 27,733 grain carloads for the week ending January 31 — 9 percent above last year and 6 percent above the three-year average. Secondary shuttle bids dropped sharply week to week, signaling adequate railcar supply.

River traffic improved but remained historically weak. Barged grain totaled 265,900 tons, up 40 percent from the prior week but still 57 percent below a year ago. Gulf unloads fell 13 percent, pointing to a slower export pull-through.

Ocean demand strengthened as 39 vessels loaded at the Gulf, 18 percent above last year. Freight to Japan increased to $53.75 per metric ton from the Gulf and $30 from the Pacific Northwest.

Diesel averaged $3.688 per gallon, slightly above last year, keeping shipping costs elevated into planting season.

Farm-Level Takeaway: Adequate transportation capacity exists, but fuel costs and soft river demand could widen basis risk.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report to share his perspective on what the bill could mean for truckers.
Mike Newland with the Propane Education & Research Council shares how producers can prepare for winter weather and the benefits of propane.
Stagger buys and diversifies fertilizer sources — watch CBAM, India’s tenders, and Brazil’s import pace to time urea, phosphate, and potash purchases.
Tight cattle supplies keep prices high for ranchers, but policy shifts, export barriers, and packer losses signal a volatile road ahead for the beef supply chain.
Distillers dried grains (DDG) values follow corn and soybean meal trends, with ethanol grind and feed demand shaping costs into early 2026.
Recognizing phosphorus and potash as critical minerals underscores their importance in crop production and food security, providing producers with an added layer of risk protection.

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.

LATEST STORIES BY THIS AUTHOR:

Experts say farmers and ethanol producers would benefit from a risk-based ILUC system that protects forests without relying on speculative modeling.
Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
Ethanol exports are expanding on strong demand from Canada and Europe, while DDGS shipments remain broad-based and supportive for feed markets.
Mary-Thomas Hart, with the National Cattlemen’s Beef Association, discusses the latest WOTUS developments and their implications for agriculture.
Only properly documented, unexhausted fertilizer applied by prior owners may qualify for Section 180 expensing; broader nutrient-based claims carry significant legal and tax risk.
Urea and phosphate see the biggest price relief from tariff exemptions, but nitrogen markets remain tight, and spring demand will still dictate pricing momentum.