Grain Transportation Mixed as Costs Edge Higher Nationwide

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

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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
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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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