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
Refining shifts could influence fuel and input costs.
Energy shifts influence diesel and fertilizer costs.
OHFB President Bill Patterson shares an update from Washington on the group’s policy priorities and the issues shaping agriculture ahead of the 2026 planting season.
Weather remains the primary driver for wheat price outlook.
For producers, success this season will require more than just a clean field; it will require meticulous record-keeping, a proactive written mitigation plan, and a constant eye on both the forecast and the federal docket.
HTS Commodities’ Lewis Williamson provides updates on how growers are preparing for spring planting in an unpredictable agricultural landscape.

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:

Steven Snow with the U.S. Small Business Administration joined us to discuss tax relief for rural Americans and the long-term benefits of new provisions impacting farmers and small businesses.
As budget hearings continue on Capitol Hill, policymakers focus on long-term solutions to stabilize the fertilizer market to support U.S. farmers.
Rising global supplies may cap soybean price strength, while sorghum prices hinge heavily on China’s export demand.
Strong ethanol output supports corn demand despite export weakness.
Strong crush margins — now at multi-year highs — are encouraging processors to expand production.