US grain shipments face rail and barge slowdowns

The U.S. Department of Agriculture's latest Grain Transportation report reveals a mixed picture for the grain industry, with strong export commitments contrasting against domestic transportation challenges. For the week ending November 28, 2024, unshipped balances of corn, soybeans, and wheat for the 2024/25 marketing year totaled 42.11 million metric tons, up 17% from the same time last year.

Key highlights include:

1. Corn export sales soared 63% from the previous week to 1.73 million metric tons.
2. Soybean export sales dipped 7% to 2.31 million metric tons.
3. Wheat export sales increased modestly by 3% to 0.38 million metric tons.

However, domestic grain transportation faced headwinds:

1. Rail: U.S. Class I railroads originated 21,909 grain carloads for the week ending November 30, down 24% from the previous week and 21% lower than last year.
2. Barge: Grain movements totaled 728,000 tons for the week ending December 7, 8% less than the previous week but 20% more than the same period last year.
3. Ocean Freight: 33 oceangoing grain vessels were loaded in the Gulf for the week ending December 5, unchanged from last year. Shipping rates from the U.S. Gulf to Japan stood at $46.00 per metric ton.

On a positive note for transporters, the U.S. average diesel price decreased 8.2 cents to $3.458 per gallon for the week ending December 9, now 52.9 cents below the same week last year.