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
Farm CPA Paul Neiffer outlines the key difference between previous ECAP payments and the Farm Bridge Assistance Program.
Cattle markets are watching the Cattle-on-Feed Report for signs of tighter supplies, while USMEF warns limited China access is cutting producer profits.
Weather-driven transportation disruptions can tighten logistics, affect basis levels, and delay grain movement during winter months.
USDA Undersecretary Luke Lindberg outlines the Farm Bridge Assistance Program and responds to calls from lawmakers and ag leaders for more assistance and expanded trade opportunities for farmers.
Callahan is no stranger to agricultural trade and has been with the U.S. Trade Representative’s office since 2016.
The Pet and Livestock Protection Act now moves to the Senate for consideration.
A new maritime biofuels coalition aims to position ocean shipping as a significant growth market for U.S. crops and waste-derived fuels.
Sponsored
Golden Harvest’s Corn Technical Product Lead, Todd McRoberts, unveils their line of Northern corn hybrids built for resilience and performance in colder climates.

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:

CoBank Lead Grains Economist Tanner Ehmke joins us to share insight and concerns over current grain storage capacity as export demand lags.
Farm CPA Paul Neiffer shares his perspective on the uncertain outlook of federal farm relief and the Farm Bill, which may not materialize until the government shutdown ends.
Large animal veterinarian Dr. Rosalyn Biggs with Oklahoma State University warns producers may not be prepared for the real threat of New World Screwworm.
We spotlight a student from Illinois who is helping to launch a middle school chapter and teaching younger students about the impact of agriculture in their communities.
FarmHER Annaliese Wegner joined us to dish about her episode of Dirt Diaries, talk about her own podcast, and other exciting moments ahead for Ag’s Most Okayest Farm Girls.