Grain Transportation Slows as Diesel Prices Move Lower

Slower grain movement may pressure basis, but falling diesel prices could help offset transportation costs.

NASHVILLE, Tenn. (RFD-TV) — Grain transportation activity showed mixed signals in late November and early December, with rail volumes easing from the prior week, barge traffic falling sharply from last year, and ocean shipping steady, while diesel fuel prices declined.

U.S. Class I railroads originated 25,680 grain carloads for the week ending November 29. That total was down 17 percent from the previous week but remained 17 percent higher than the same week last year and 4 percent above the three-year average. December shuttle secondary railcar bids averaged $442 per car above tariff, down $120 week to week but still elevated compared to last year.

Barged grain movements totaled 548,900 tons for the week ending December 6, down 9 percent from the previous week and 25 percent lower than the same period a year ago. Grain barges moving downriver declined, and unloadings in the New Orleans region slipped 8 percent from the prior week.

Ocean shipping activity was stable, with freight rates to Japan unchanged. The national average diesel price fell 9.3¢ to $3.665 per gallon, though it remains above year-ago levels.

Farm-Level Takeaway: Slower grain movement may pressure basis, but falling diesel prices could help offset transportation costs.

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