Rail Values Hit Six-Year Lows Due to Soybean Export Weakness

Grain shippers face lower freight values thanks to weak soybean exports and strong rail service, but barge traffic and forward Gulf loadings suggest continued uncertainty as harvest ramps up.

railroad 1280x720.jpg

NASHVILLE, Tenn. (RFD-TV) — October rail freight costs for grain have dropped to their lowest level in six years as sluggish soybean export demand weighs on the market.

For the week ending September 4, USDA’s Agricultural Marketing Service reported BNSF shuttle values averaging $406 per car and Union Pacific shuttles at $250 per car. Both are more than $800 below their five-year averages for the same week. Analysts say improved service on the major railroads has also added to capacity, further reducing secondary market prices.

Other transport indicators show similar softness. Barge grain movements on the Mississippi totaled 361,000 tons, down 6 percent from the prior week and 9 percent from last year. Gulf export loadings reached 26 vessels, 8 percent above the same period the previous year, though forward bookings suggest fewer ships ahead.

Meanwhile, diesel fuel prices climbed for the second week in a row to $3.77 per gallon, though federal projections call for slight declines by the end of 2025 as global oil inventories expand.

Tony’s Farm-Level Takeaway: Grain shippers face lower freight values thanks to weak soybean exports and strong rail service, but barge traffic and forward Gulf loadings suggest continued uncertainty as harvest ramps up.
Related Stories
As we start the new year, let’s take a look at some of the legislative items from 2023 affecting agriculture that will continue to play out in the political area for months to come.
Both imports and exports are moving through the Panama Canal at a slower pace as the ag industry continues to deal with drought-related restrictions.

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:

Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
Gary Hall, co-founder of Hollywood Impact Studios Rehabilitation, joined the program to discuss using agriculture to provide opportunities and mentorship for at-risk youth in Southern California.
The agriculture workforce remains strong and diverse, offering meaningful pathways for students pursuing careers that support the food and farm economy.
Screwworm.gov has targeted resources for a wide range of stakeholders, including livestock producers, veterinarians, animal health officials, wildlife professionals, healthcare providers, pet owners, researchers, drug manufacturers, and the general public.
Mike Steenhoek of the Soy Transportation Coalition discusses industry reactions to the proposed Union Pacific–Norfolk Southern merger, the Surface Transportation Board’s review process, and current conditions on the Mississippi River.
Richard Gupton of the Agricultural Retailers Association explains a new resource designed to help farmers comply with ESA-related pesticide label requirements.