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
Expect business-as-usual for most container exports.
CoBank Lead Grains Economist Tanner Ehmke joins us to share insight and concerns over current grain storage capacity as export demand lags.
AFBF Associate Economist Samantha Ayoub joins us to dive into H-2A visa program changes and what can be done to ease the pressure on producers.
As the government shutdown pushes the farm economy closer to the brink, Sens. Grassley and Ernst of Iowa are raising their voices for agriculture.
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
Plan for a cooler global trade market in 2026 with tighter margins on exports, potential rate shifts, and premiums for reliable deliveries into Asian and African growth markets.
George Baird, with the American Society of Farm Managers and Rural Appraisers (ASFMRA), joins us with updates on how this year’s rice harvest is shaping up.

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:

Lower U.S. and Mexican production means tighter sugar supplies and greater reliance on imports headed into 2026.
Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
Lower tariff rates and new rail-service proposals may improve corn movement efficiency during early-season marketing.
Crop producers face tightening credit and lower incomes, while strong cattle markets continue to stabilize finances in livestock-heavy regions.
Early Cattle-on-Feed estimates point to slightly tighter cattle supplies, reinforcing the need to monitor prices and timing for winter marketing.
Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.