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
Kevin Charleston of Specialty Risk Insurance discusses the importance of grain bin safety and joint efforts with Nationwide to provide farmers and first responders with access to critical, life-saving rescue tubes.
RealAg Radio host Sean Haney outlines the Trump Administration’s current trade priorities and what meaningful market expansion looks like for farmers.
USDA’s February WASDE report, analysts expect minimal price movement as grain stocks remain steady. Traders weigh renewed Chinese soybean purchases, South American weather, acreage shifts, and upcoming USMCA trade talks.
A transition from traditional, technology-specific subsidies toward a performance-based, technology-neutral framework
Lower freight costs helped sustain export demand amid a challenging pricing environment.
New Holland VP Ryan Schaefer shares insights into the brand’s legacy and innovations that support U.S. cattle producers.
OODIA’s Lewie Pugh discusses the EPA’s new Right to Repair guidance and other regulatory developments impacting the trucking and agriculture industries.
At CattleCon 2026 in Nashville, RealAg Radio’s Shaun Haney discusses profitability, consumer demand, and how the integrated U.S.–Canada beef supply chain impacts cattle producers across North America.
The USDA’s February WASDE report looms as the CME Ag Economy Barometer shows declining farmer confidence, and more ag industry groups calling for swift policy action.

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:

Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
Farm numbers still favor small operations, but production, resilience, and risk management are increasingly concentrated among fewer, larger farms.
China’s reliance on imported soybeans remains entrenched, shaping global demand and trade leverage.
Cuba remains a steady, nearby buyer of U.S. poultry, pork, dairy, and staples, but legal and compliance risks could still affect shipping and payment channels.
Agriculture remains a key drag on regional growth amid weak prices and policy uncertainty.
Tight cattle supplies favor poultry and pork while keeping beef margins under pressure.