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.
This case could influence how much leverage grain shippers have when a preferred rail outlet is blocked or priced too high.
U.S. Cattlemen’s Association President Justin Tupper joins us to discuss the DOJ packer investigation, industry competition, and the outlook for cattle producers.
Farm Bureau economist Dr. Faith Parum says EPA’s final biofuel volumes keep corn demand steady and strengthen the outlook for soybean-based diesel feedstocks.
Jonathan Braley joins us to discuss rising cybersecurity threats in agriculture, the risks of ransomware attacks, and how Food and Ag-ISAC’s new guide can help businesses better protect themselves.
Industry leaders say overseas markets remain critical as USDA pushes for broader export opportunities.
CME Group’s Fred Seamon joins us to break down the drop in farmer sentiment, discuss the role of input costs and global factors, and share his outlook for the ag economy ahead.
