US grain export sales surge as transportation costs fluctuate

The U.S. Department of Agriculture's Agricultural Marketing Service has released its Grain Transportation Report for the week ending December 26, 2024, revealing a complex picture of the grain transportation landscape. The report highlights several key developments in export sales, rail transportation, barge movements, and ocean freight rates.

Export sales for corn, soybeans, and wheat showed significant increases compared to the previous week. Corn export sales for marketing year 2024/25 rose by 24 percent, while soybean and wheat sales increased by 21 percent and 58 percent, respectively. The total unshipped balance for these grains stood at 41.19 million metric tons, up 7 percent from the same time last year.

Rail transportation data presented a mixed picture. While U.S. Class I railroads saw a slight 1 percent decrease in grain carloads compared to the previous week, the numbers remained unchanged from last year and 2 percent above the 3-year average. Secondary railcar bids for December shuttles decreased, while January shuttle bids showed significant drops compared to both the previous week and last year.

Barge movements totaled 795,700 tons for the week ending December 21, marking a 12 percent decrease from the previous week but a substantial 56 percent increase compared to the same period last year. Ocean freight saw an uptick in activity, with 35 oceangoing grain vessels loaded in the Gulf, 13 percent more than the same period last year.

On the fuel front, the U.S. average diesel price decreased to $3.476 per gallon, 43.8 cents below the same week last year, potentially easing transportation costs for grain shippers.