NASHVILLE, TN (RFD NEWS) — Transportation costs remain a major hurdle for U.S. wheat moving to Japan, even as USDA projects stronger wheat exports this marketing year.
USDA’s Grain Transportation Report shows freight accounted for 35 to 39 percent of first-quarter landed costs from Kansas and North Dakota.
Converted to bushels, transportation costs ranged from about $2.65 per bushel for Kansas wheat moving through the Pacific Northwest to $3.56 per bushel for North Dakota wheat shipped through the Gulf. Total landed costs ranged from about $7.44 to $9.04 per bushel.
Ocean freight increased from a year earlier, rising 14 percent through Pacific Northwest routes and 19 percent through Gulf routes. Higher bunker fuel costs and strong Asian shipping demand contributed to those increases.
Even with higher freight pressure, lower farm values kept total landed costs below last year across all four routes. North Dakota wheat moving through the Gulf remained the most expensive route.
USDA projects 2025/26 wheat exports near 910 million bushels, up 10 percent from the previous year, making transportation costs and export competitiveness increasingly important.
Farm-Level Takeaway: Stronger wheat exports help demand, but high freight costs continue to limit producer competitiveness in overseas markets.
Tony St. James, RFD News Markets Specialist
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