Grain Transportation Signals Strong Rail Demand into 2026

Rail continues to carry a larger share of the grain load, increasing sensitivity to rail capacity, labor, and pricing conditions.

NASHVILLE, Tenn. (RFD NEWS) — Grain transportation activity remains elevated across rail and export channels, signaling strong demand movement even as river traffic softened seasonally. New data show railroads continuing to carry a growing share of grain logistics, reinforcing rail’s expanding role in U.S. agriculture.

U.S. Class I railroads originated more than 32,000 grain carloads for the week ending January 10, up 22 percent from the prior week and 26 percent from last year. Secondary railcar values reflected that demand, with January shuttle bids averaging $325 above tariff, rising week to week and sharply higher than a year ago. Non-shuttle bids remained modest but stable.

Longer-term trends confirm rail strength. Class I railroads moved a record 1.38 million grain carloads in 2025, the highest total since federal tracking began. Gains were widespread, led by Canadian National and Canadian Pacific Kansas City, reflecting strong export flows to Mexico and expanded Midwest grain handling capacity.

Barge movements declined 15 percent week to week but stayed above year-ago levels, while Gulf export loadings and vessel lineups remained strong. Ocean freight rates to Japan were steady to slightly higher, supporting export competitiveness.

Farm-Level Takeaway: Rail continues to carry a larger share of the grain load, increasing sensitivity to rail capacity, labor, and pricing conditions.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
The FAO Food Price Index for November fell by more than 1 percent in November, marking the third straight month of declines.
Higher ocean freight raises export costs just as global grain competition intensifies.
Buying a real Christmas tree directly supports U.S. farmers facing rising import competition, long production cycles, and weather-driven risks.
Strong plant output and rising exports contrast with softer domestic blending demand, suggesting margins are poised for volatility.
Milk output is rising, but steep drops in Class I–IV prices are tightening margins heading into 2026.
Tight cattle supplies continue to drive lower beef output despite heavier weights.

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:

Cattle and hog supplies continue to tighten while dairy output expands, creating a split outlook in which red-meat prices soften and milk values come under pressure from larger supplies.
Firm live cow prices and shifting dairy-side culling suggest cull cow values may stay stronger than usual this winter despite weaker cow beef cutout trends.
Lewis Williamson with HTS Commodities shares an update on post-WASDE grain movement, with corn leading export momentum, soybeans steady, and wheat and sorghum continuing to move selectively.
New SDRP funding and expanded loss programs give producers additional tools to rebuild cash flow and stabilize operations after two years of severe weather losses.
The new WOTUS proposal narrows federal jurisdiction, restores key agricultural exclusions, and gives farmers clearer permitting rules after years of regulatory uncertainty.
Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, November 17, 2025.