Rail Grain Volumes Mixed While Cross-Border Logistics Expand

Rail logistics remain supportive, with access to Mexico improving

LUBBOCK, Texas (RFD NEWS) — Grain rail traffic remains steady early this year, with shifting secondary markets and new export routing options shaping movement into Mexico and the Southeast.

U.S. Class I railroads originated 27,108 grain carloads during the week ending February 7 — down 2 percent from the prior week but 6 percent above both last year and the three-year average. Secondary shuttle bids averaged $163 per car above tariff, narrowing sharply from a year ago and signaling less congestion pressure. Non-shuttle bids averaged $25 above tariff, also well below year-earlier levels.

BNSF Railway announced that beginning Monday (March 1st), its Mexico locations will qualify for single-destination efficiency trains carrying wheat. The 110-car unit trains can now move directly to Mexico without being split into blocks, streamlining cross-border wheat logistics. Over the first six weeks of 2026, 226,000 metric tons of wheat moved by rail to Mexico — 10 percent below last year.

In the Southeast, North Carolina committed $16.3 million in freight rail grants, supporting short lines that serve grain elevators and feed mills. The state imported more than 7 million tons of Midwest grain by rail in 2024.

Farm-Level Takeaway: Rail logistics remain supportive, with access to Mexico improving.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
While a ceasefire remains in place, overnight missile attacks are raising questions about its stability.
Washington growers say this year’s cherry crop may be smaller than last season but still strong enough to support promotions.
Texas officials say sterile fly releases and expanded surveillance efforts are helping slow the spread of the flesh-eating pest.
Drought remains a major risk, with the ERS reporting that 98 percent of the U.S. cotton production area was affected by drought in early May.

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:

Global soybean competition is moving deeper into crush capacity, logistics, and value-added product control.
CME Group’s Fred Seamon joins us to break down the drop in farmer sentiment, discuss the role of input costs and global factors, and share his outlook for the ag economy ahead.
Cotton margins improved slightly, even as fertilizer and fuel costs rose due to the Strait of Hormuz disruption linked to the Iran war.
Flour milling demand stayed generally steady, but total wheat grind remained slightly softer year over year.
U.S. export inspections turned in another strong corn week.
The latest developments point to shifting export routes, higher congestion risk, and continuing cost pressure for grain, fertilizer, and energy shipments.