Transportation Costs Shift Corn And Soybean Export Outlook

Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large.

NASHVILLE, Tenn. (RFD-TV) — Transportation costs for U.S. grain exports eased in the second quarter of 2025, lowering landed costs for most routes and boosting inspection volumes.

October rail freight costs for grain have dropped to their lowest level in six years as sluggish soybean export demand weighs on the market.

The USDA’s Agricultural Marketing Service reported that Gulf-route transportation costs fell 1 percent for both corn and soybeans compared to last year, with ocean freight down 24 percent. Quarter-to-quarter, costs dropped 18 percent for corn and 22 percent for soybeans thanks to cheaper trucking and the seasonal reopening of the Upper Mississippi River.

Corn inspections through the Gulf reached 10 million metric tons (394 million bushels), up 43 percent year-over-year, while soybean inspections totaled 2.9 million metric tons (mmt), or 106 million bushels, up 7 percent.

In the Pacific Northwest, transportation costs fell 7 percent for corn and 6 percent for soybeans from last year. Inspections there rose to 6.8 mmt (268 million bushels) of corn, up 26 percent, and 0.2 mmt (7 million bushels) of soybeans, up 222 percent.

Looking ahead, USDA projects U.S. corn exports in 2025/26 to climb 2 percent to 73.03 mmt (2.87 billion bushels), while soybean exports are expected to fall 9 percent to 46.40 mmt (1.70 billion bushels).

Analysts say China’s absence from U.S. corn and soybean purchases remains a key uncertainty even as Mexico, Japan, and South Korea continue to anchor demand.

Tony’s Farm-Level Takeaway: Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large. Farmers should watch Gulf and PNW flows closely as transportation and trade dynamics set the tone for the new marketing year.
Related Stories
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.
Year-round E15 remains on the table, but procedural caution and competing regional interests pushed action into a slower, negotiated path.
Strong production and rising stocks may pressure ethanol margins unless demand or exports continue to improve.
Rising import pressure and tougher export competition are likely to persist into 2026, supporting domestic supplies while capping export growth.
Without additional support, many soybean operations will continue to face financial stress as they prepare for the 2026 crop.
USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
Mike Steenhoek with the Soy Transportation Coalition discusses supply chain challenges facing agriculture as snow, sleet and ice threaten most of the Eastern U.S.
Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
Large-scale land purchases signal rising competition for ranchland, reinforcing its value while reshaping long-term access and control in rural agriculture.

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:

Texas Farm Bureau President Russell Boening joined us with the latest update on storm conditions and impacts across the state.
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.
Payment totals alone do not show financial stress — production costs and net losses complete the picture.
A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.