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
Some sustainability shifts are not particularly challenging and can be implemented with resources already available to farmers and ranchers on their operations.
With the U.S.–Vietnam agreement nearing signature, U.S. cotton, corn, and soybean exporters could lock in new demand lanes just as global supply shifts.
The government reopens after 43 days. USDA resumes key reports, weighs farm aid, and watches China’s next move on U.S. soybean purchases.
USMEF President and CEO Dan Halstrom shares how recent trade talks are influencing U.S. red meat global sales and the importance of key trade agreements like the USMCA.
Friday’s release will be the first WASDE report in about two months, and early estimates indicate a corn surplus is still on the way.
A Reuters report shows China has a soybean “glut,” finding stockpiles at Chinese ports are at record levels, with crushers there holding the most supplies since 2017.
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.

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:

Smaller U.S. production and steady global demand could provide better pricing opportunities in 2026.
Higher yields are cushioning lower acreage, but reduced production could support firmer potato prices into 2026.
Producers across the country balanced winter weather disruptions, shifting export demand, and tightening margins as year-end decisions come into focus.
Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
Stronger rail movement and lower fuel prices are easing logistics, even as export pace and river conditions remain uneven.
Small, locally focused wineries are finding resilience through direct sales and regional loyalty rather than scale alone.