Grain Transportation Volumes Mixed as Diesel Prices Ease

Year-over-year grain movement remained strong despite weaker weekly rail volumes and lower ocean freight rates.

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Wirestock Creators/Gary Mosman - stock.adobe.com

NASHVILLE, Tenn. (RFD News) — Grain transportation signals were mixed in late June, with stronger year-over-year rail and barge movement but softer weekly rail volume and lower ocean freight rates.

U.S. Class I railroads originated 28,074 grain carloads for the week ending June 20. That was down 3 percent from the previous week, but 8 percent above last year and 29 percent above the three-year average.

Secondary shuttle railcar bids averaged $75 below tariff for July, while non-shuttle bids averaged $38 above tariff. That split points to uneven rail demand, with shuttle capacity less expensive while smaller-volume movements stayed firmer.

Barged grain movement totaled 584,150 tons for the week ending June 27, up 9 percent from the prior week and 1 percent above last year. New Orleans unloadings also improved, with 578 grain barges unloaded, up 44 percent from the previous week.

Ocean grain movement through the Gulf was stronger, but demand for forward vessels softened. Diesel fell 16.4 cents to $4.668 per gallon, still 94.1 cents above last year.


Farm-Level Takeaway: Grain movement remains active, but transportation costs and rail capacity still vary by route and shipping method.
Tony St. James, RFD News Markets Specialist

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.

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