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.

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:

Stable U.S. fundamentals continue for major crops, but global adjustments in corn, soybeans, wheat, and cotton may influence early-2026 pricing.
Corn and wheat exports continue to outperform last year, while soybeans show steady but subdued movement compared to 2024.
Tariff relief and new trade agreements may temper food costs by reducing import costs.
Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.
Mold damage is tightening China’s corn supplies, supporting higher prices and creating potential demand for alternative feed grains in early 2026.