Grain Movement Surges Amid Rising Transportation Costs

U.S. grain transportation demand is increasing ahead of harvest, but higher rail premiums and fuel costs could add pressure to basis and producer returns.

The Class I railroads originated 27,829 grain carloads during the week ending August 22, up 12% from last year and 26% above the three-year average. September shuttle bids averaged $638 per car above tariff, sharply higher than both the prior week and last year.

Barge movement also increased, reaching about 540,000 tons for the week ending August 29, up 14% from the previous week and 41% from a year earlier. Mexico remains an important rail destination, with corn exports by rail totaling 13.9 million metric tons through the first 10 months of 2025/26, 32% above the five-year average.

Rising transportation costs remain a concern, however, as several railroads raised soybean tariffs and diesel averaged $5.599 per gallon, nearly $1.87 above last year.