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
Export growth remains key for grain profitability.
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