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.
Smaller exporter crops and lower global stocks could keep wheat markets sensitive to weather, trade, and shifts in demand.
Emily Oberbroeckling says producers in northeast Iowa have made strong planting progress while continuing to monitor moisture conditions.
Jeff Frazier of Scoular discusses the early High Plains canola harvest, acreage growth in Kansas and Oklahoma, and theoutlook for planting and production.
National Pork Board’s Andy Tauer discusses the growing popularity of the Boston Butt Pork Burger and key topics at the USMEF Spring Conference.
Corn inspections remain strong year-to-date, while China’s soybean and sorghum movement remains important to late-season export demand.
At the center of the announcement is the Blue Point Project in Louisiana, a $3.7 billion ammonia facility, USDA says, that will become the world’s largest ammonia plant once completed.
