U.S. grain shipping costs to Mexico increased significantly in the second quarter of 2026, with corn landing costs up 5.5% by water and 4.3% by land, soybeans up 8% and 6.8% respectively, and wheat up 7.8% and 15.6%, driven primarily by rising transportation expenses including higher truck, rail, and ocean freight rates.
- Corn landed costs jumped 5.5% for water routes to $245.66 per metric ton and 4.3% for land routes to $241.58 per metric ton in Q2 2026
- Soybean and wheat costs climbed 8% and 7.8% respectively on water routes, with wheat showing the steepest land-route increase at 15.6%
- Transportation represented 14-29% of water-route landed costs and 11-29% of land-route costs, with increases driven by higher truck, rail, and ocean freight rates
- Year-over-year growth showed most grain routes posting higher landed costs despite some farm value declines, except land-route corn which fell 2.1%
- U.S. grain exports to Mexico totaled 6.32 million metric tons of corn, 1.02 million metric tons of soybeans, and 1.08 million metric tons of wheat in Q2 2026
Costs for shipping U.S. grain to Mexico increased from the first to second quarter of 2026, driven by rising transportation expenses and higher farm values, according to a USDA Agricultural Marketing Service's Grain Transportation Report.
Landed costs, which combine transportation and farm values, rose for corn, soybeans, and wheat shipped both by water routes to Veracruz and overland to U.S.-Mexico border locations. The increases matter because Mexico ranks as a major buyer of U.S. grain, making competitive pricing essential for maintaining market share.
For corn shipped by water, landed costs jumped 5.5% quarter to quarter, reaching $245.66 per metric ton. Land-route corn costs increased 4.3% to $241.58 per metric ton. Transportation made up 29% of the landed cost for both routes.
Soybean landed costs climbed 8% for water routes to $496.31 per metric ton and 6.8% for land routes to $479.28 per metric ton. Wheat showed similar patterns, with water-route costs up 7.8% to $273.12 per metric ton and land-route costs up 15.6% to $261.28 per metric ton.
Transportation costs increased across all grains and routes from first to second quarter 2026. Water-route shipping costs rose because of higher truck, rail, and ocean freight rates. Only barge rates declined, following typical seasonal patterns after the Upper Mississippi River reopened from its annual winter closure in late March.
Truck rates increased as availability tightened and diesel fuel prices climbed. Rail rates rose partly because of record-high fuel surcharges as diesel prices soared. Ocean freight rates for bulk items, including grain, went up due to strong cargo demand and rising bunker fuel costs.
Land-route shipping costs for all grains increased mainly because of rising rail rates, which include public tariffs plus fuel surcharges.
Year over year, from second quarter 2025 to second quarter 2026, landed costs rose for all route and grain combinations except land-route corn. Water-route corn costs increased 4% despite farm values dropping 2.7% because transportation costs surged 25.8%. Land-route corn costs fell 2.1% as declining farm values outweighed rising transportation expenses.
The share of landed costs attributed to transportation ranged from 14% to 29% for water routes and 11% to 29% for land routes in the second quarter.
U.S. grain exports to Mexico during second quarter 2026 totaled 6.32 million metric tons of corn (up 4% from first quarter), 1.02 million metric tons of soybeans (down 7%), and 1.08 million metric tons of wheat (up 1%), according to USDA’s Foreign Agricultural Service data.
Year over year, U.S. exports to Mexico fell 8% for corn, remained unchanged for soybeans, and increased 5% for wheat.
