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
USMEF President and CEO Dan Halstrom shares how recent trade talks are influencing U.S. red meat global sales and the importance of key trade agreements like the USMCA.
Friday’s release will be the first WASDE report in about two months, and early estimates indicate a corn surplus is still on the way.
A Reuters report shows China has a soybean “glut,” finding stockpiles at Chinese ports are at record levels, with crushers there holding the most supplies since 2017.
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
Lucia Ruano, USMEF’s Central America representative, discusses what is driving demand for U.S. beef and pork in the region.
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.

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:

RFD NEWS correspondent Frank McCaffrey recently spoke with Dr. Mike Vickers, a South Texas rancher, who says illegal border crossings have dramatically declined in the last year.
Auction manager and West Texas A&M University student Presley Graves joined us to discuss the growth of StockShowAuctions.com and its impact on youth in agriculture.
Texas Farm Bureau President Russell Boening joined us with the latest update on storm conditions and impacts across the state.
Mike Knotts with the Tennessee Electric Cooperative Association joined us with the latest on storm impacts, power restoration, and safety considerations following the ice storm.
Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.
Meat stocks rose seasonally but remain below last year overall, while tighter butter inventories could support dairy prices, and belly stocks warrant close watch for pork markets.