LUBBOCK, TEXAS (RFD NEWS) — Farmers have plenty of grain to move, and export demand remains strong, but transportation costs are rising across rail, barge, and ocean freight. USDA’s Grain Transportation Report says last fall’s record corn harvest helped push first-quarter corn exports to their highest level since 2021.
The biggest supply pressure is corn. USDA says December 1 corn stocks were about 1.6 billion bushels above the three-year average, with larger supplies concentrated across the western Corn Belt, including Kansas, Nebraska, South Dakota, Minnesota, and Iowa.
Farm-Level Takeaway: Strong export demand is supportive, but higher freight costs may pressure basis and grain movement margins.
Tony St. James, RFD News Markets Specialist
That grain still has to reach buyers. Rail grain carloads hit record year-to-date levels, while Mississippi River barge traffic recovered after winter disruptions. Ocean vessel loadings in the U.S. Gulf also ran ahead of last year.
The pressure point is fuel. USDA says diesel prices climbed sharply after oil market disruptions, raising rail fuel surcharges, towing costs, and ocean freight expenses.
Strong exports are helping move corn and wheat, but higher freight costs can still affect basis and local bids.
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