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
Broader export demand helps stabilize prices and supports stronger marketing opportunities over time.
Rising production underscores the importance of marketing discipline and margin protection as milk supplies expand.
The U.S. Forest Service takes us on the same journey from a tree farm in Nevada across America to experience the magic of Christmas in the U.S. Capitol.
Rep. Randy Feenstra, R-IA, details how the “One, Big, Beautiful Bill” Act (OBBBA) supports farmers, biofuels, and rural communities with tax breaks, crop insurance relief, and ag infrastructure.
RealAg Radio host Shaun Haney explains why the 2026 USMCA review could directly affect dairy access, produce competition, and export reliability for U.S. farmers and ranchers.
Smaller U.S. production and steady global demand could provide better pricing opportunities in 2026.
More than 1,100 residents and farmers have signed a letter urging Ag Secretary Brooke Rollins to step in, saying the proposal threatens irrigation supplies and long-term farm viability in the region.
With record grain harvests and rising global ethanol demand, leaders across the ag and energy sectors are pushing for year-round E15 sales to mitigate the strain on grain trade.
Stronger rail movement and lower fuel prices are easing logistics, even as export pace and river conditions remain uneven.

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:

The Senate failed to pass a continuing resolution that had been approved by the House the previous week. They could take it up again today, but it would take seven democrats to end the stalemate.
Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.
The USDA is working with 14 different states, including Georgia, to develop and implement block grants to address the unique disaster recovery needs for each state.
The USDA’s August Cold Storage report shows shifting stock levels across major dairy, meat, and poultry products.
The total value of the U.S. potato crop was $4.60 billion in 2024, representing an 8% decrease from the previous year.
Crop-specific shifts and strong prices highlight the variability of this year’s fruit and tree nut harvest, according to USDA data.