Lower Transport Costs Support Corn; Soybean Pressure Builds

Lower shipping costs favor corn, while soybeans face pressure.

trade_adobe stock.png

Adobe Stock

NASHVILLE, Tenn. (RFD NEWS) — Lower transportation costs are helping U.S. corn remain competitive in export markets, while soybean demand continues to face pressure from global competition. USDA data shows fourth-quarter shipping costs declined, supporting corn movement even as soybean exports weakened.

Transportation costs from the Midwest to Japan fell both quarter-to-quarter and year-over-year. Lower barge and truck rates drove much of the decline, offsetting slightly higher ocean freight costs. That helped reduce total landed costs for corn through both Gulf and Pacific Northwest routes.

Soybean costs moved in the opposite direction. Higher farm values pushed total landed costs slightly higher, despite similar transportation savings. That reduced competitiveness in global markets.

Export trends reflect the shift. Fourth-quarter corn exports rose sharply, supported by demand from Asia and Latin America. Soybean exports dropped significantly, driven by weaker demand from China and stronger competition from Brazil.

Looking ahead, USDA projects corn exports to rise this marketing year, while soybean exports are expected to decline.

Farm-Level Takeaway: Lower shipping costs favor corn, while soybeans face pressure.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
U.S.-Mexico tariff talks have stalled over autos, steel, and aluminum, raising concerns about trade certainty and access for American agricultural exports.
Weather and production challenges are creating uncertainty around two key ingredients.
Disruptions in Russia and the Middle East cut diesel exports by 1.3 million barrels a day last month.
Stronger export and crush demand could help offset pressure from USDA’s record yield forecast.

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:

Producers able to hold grain could find better marketing opportunities after the main harvest window.
Lenders are watching repayment capacity as uncertainty around crop profitability continues
New systems could give producers easier electronic access to acreage records and federal loan information.
Farm income climbed in 2025, but high production expenses continued to limit gains for producers.
EPA is considering when to restore 770 million renewable fuel credits lost through refinery exemptions.
USDA and the FTC are asking producers to share firsthand experiences with equipment sales and repair restrictions.
Charly Cummings of Superior Livestock discusses strong buyer demand, cattle market trends, and fall weaning and marketing decisions for ranchers.
Lower machinery sales reflect continued producer caution toward major equipment purchases as farm margins remain under pressure.
H-2A employers should watch for a new federal wage methodology and possible backpay requirements following the court ruling.
Large USDA revisions added pressure to corn markets and increased producer concern over timing, consistency, and forced sales during harvest.
U.S.-China trade separation has accelerated since 2025, while broader geopolitical trade fragmentation has stabilized, the WTO said in its latest outlook.
Farmdoc’s Gerald Mashange says total agricultural loans are up 3.79 percent from a year earlier, while farm real estate delinquencies remain near year-earlier levels.