Grain Transportation Report

A weekly publication of the Transportation and Marketing Programs/Transportation Services Division www.ams.usda.gov/GTR
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WEEKLY HIGHLIGHTS Lower Mississippi River and Gulf of Mexico Ports Reopen after Isaac The Lower Mississippi River between the Southwest Pass and Baton Rouge, LA, is open to navigation with no restrictions. All ocean ports in the region are open and operationalno major damage to these facilities has been reported. Most export grain elevators on the Mississippi River have resumed operations. Rail service has been restored to most areas of New Orleans, LA, and to Mobile, AL, including service to grain elevators. Despite Isaacs Deluge, Long-term Drought Still Affecting the Inland Waterways Heavy rain from remnants of Hurricane Isaac brought some relief to the drought-stricken middle part of the country, but the U.S. Army Corps of Engineers (Corps) still must continue dredging to keep barges moving. River levels rose significantly in strategically important sections around Vicksburg and Greenville, MS, and Memphis, TN. However, the Corps continues to dredge at 11 lowwater spots in the river. Barge traffic is delayed in the vicinity of the dredging activities. In addition, barge operators continue to light-load barges for safe transit throughout the system. As of September 3, there were no reported groundings in the last 48 hours and more importantly no stoppages on the river. Panama Canal Toll Increase Approved On August 7, the Panamanian government approved the proposal to restructure and apply selective increases in the Panama Canal pricing system. The two-stage toll increase will apply to the following market segments: general cargo, dry bulk, tanker, chemical tanker, liquefied petroleum gas, vehicle carriers and ro-ro, and others (see GTR dated 7/5/12 and 4/26/12). The new tolls will be effective October 1, 2012 and October 1, 2013. Changes will also be applied to the small-vessel toll structure based on the vessels length. The tolls for the remaining segments and the price per 20-foot equivalent unit for containers carried onboard a vessel will stay the same for now. For more details, see http://www.pancanal.com/common/maritime/advisories/2012/a-20-2012.pdf Virginia Makes Preparations to Minimize Impact from Potential Strike Talks broke down on August 22 between the International Longshoremens Association (ILA) and the United States Maritime Alliance to create a new six-year contract to replace the current one that expires September 30. If no deal is reached by then, a strike by the 65,000-member ILA would affect ports along the East and Gulf Coast. In response, the Virginia Port Authority announced August 31 that it is making preparations with State-owned cargo terminals to move as much cargo as possible between now and October 1. Port officials believe customers may immediately divert up to 15 percent of cargo to West Coast ports. The Port of Norfolk (including Newport News, Portsmouth, and Chesapeake) rank tenth in the nation for total waterborne agricultural exports with the top three exports soybeans, grain products, and bulk grains representing 60 percent of the ports agricultural exports in 2011. Snapshots by Sector Rail U.S. railroads originated 18,954 carloads of grain during the week ending August 25, up 5 percent from last week, 5 percent from last year, and 6 percent lower than the 3-year average. During the week ending August 30, average September non-shuttle secondary railcar bids/offers per car were $18.50 above tariff, $3 more than last week and $10 higher than last year. Average shuttle bids/offers were $397 below tariff, $30.50 lower than last week and $78 higher than last year. Ocean During the week ending August 30, 29 ocean-going grain vessels were loaded in the Gulf, down 9 percent from the same period last year. Fifty-two vessels are expected to be loaded within the next 10 days, 33 percent more than the same period last year. During the week ending August 31, the ocean freight rate for shipping bulk grain from the Gulf to Japan was $49 per mt, down 2 percent from the previous week. The cost of shipping from the Pacific Northwest to Japan was $25.50 per mt, down 4 percent from the previous week. Barge During the week ending September 1, barge grain movements totaled 253,782 tons, 8 percent lower than the previous week and 27 percent higher than the same period last year. During the week ending September 1, 163 grain barges moved down river, down 11.4 percent from last week; 228 grain barges were unloaded in New Orleans, down 58.8 percent from the previous week. Fuel During the week ending September 3, U.S. average diesel fuel prices increased 4 cents to $4.13 per gallon26 cents higher than the same week last year.

September 6, 2012

Contents
Article/ Calendar Grain Transportation Indicators Rail Barge Truck Exports Ocean Brazil Mexico Grain Truck/Ocean Rate Advisory Data Links

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September 13, 2012

Feature Article/Calendar
Soybean Transportation Cost Decreased As Farm Prices Rose
The transportation cost for shipping soybeans from the United States and Brazil to Europe and China generally declined during the second quarter as farm prices rose. The cost of shipping soybeans from Minneapolis, MN, and Davenport, IA, to Hamburg, Germany, declined 17 and 20 percent, respectively during the second quarter (table 1). The cost of shipping from the same cities to Shanghai, China, through the U.S. Gulf decreased 13 and 14 percent during the quarter (table 2). However, the cost of shipping from Fargo, ND, and Sioux Falls, SD, through the Pacific Northwest (PNW) increased by 3 percent during the quarter. The cost of shipping from North Mato Grosso and South Gois, Brazil, to Hamburg decreased 3 and 1 percent, respectively, during the quarter (table 1). The cost of shipping from North Mato Grosso (MT) to Shanghai decreased by 2 percent, while the cost of shipping from South Gois decreased 1 percent (table 2).
Table 1-Quarterly costs of transporting soybeans from U.S. and Brazil to Hamburg, Germany
2011 2 nd qtr. 2012 1 st qtr. 2012 2nd qtr. Percent change 2011 2012 1 st qtr. 2012 Percent change

Yr. to Yr. Qtr. to Qtr. 2 nd qtr. United States (via U.S. Gulf)

2nd qtr. Yr. to Yr. Qtr. to Qtr.

Truck Barge Ocean1 Rail Total transportation2 Farm Value 3 Landed Cost Transport % of landed cost

11.34 37.26 21.52 70.12 465.42 535.54 13.09

Minneapolis, MN --$/mt-9.14 11.66 12.53 28.18 19.91 31.61 73.19 447.05 520.24 14.07 20.76 60.60 502.16 562.76 10.77

2.82 -24.37 -3.53 -13.58 7.89 5.08

27.57 124.90 4.27 -17.20 12.33 8.17 Brazil

11.34 27.27 21.52 60.13 481.34 541.47 11.10

Davenport, IA --$/mt-9.14 11.66 12.53 20.23 19.91 24.16 65.74 448.27 514.01 12.79 20.76 52.65 503.39 556.04 9.47

2.82 -25.82 -3.53 -12.44 4.58 2.69

27.57 61.45 4.27 -19.91 12.30 8.18

Truck Ocean6 Total transportation2 Farm Value 7 Landed Cost Transport % of landed cost
1 3 4 5 6 7

125.83 35.00 160.83 386.58 547.41 29.38

North MT4 - Santos 5 --$/mt-117.52 110.07 -12.52 32.00 149.52 377.70 527.22 28.36 35.00 145.07 448.29 593.36 24.45 0.00 -9.80 15.96 8.39

-6.34 9.38 -2.98 18.69 12.55

70.31 36.00 106.31 413.15 519.46 20.47

South GO4 - Paranagua5 --$/mt-55.14 50.51 -28.16 31.58 86.72 401.58 488.30 17.76 35.00 85.51 428.40 513.91 16.64 -2.78 -19.57 3.69 -1.07

-8.40 10.83 -1.40 6.68 5.24

Source: O'Neil Commodity Consulting Source: USDA/NASS Producing regions: MT= Mato Grosso, GO = Gois Export ports Source: ESALQ/ USP (University of So Paulo, Brazil) and USDA/AMS Source: Companhia Nacional de Abastecimento (CONAB) www.conab.gov.br

Note: Total may not add exactly due to rounding

During the first quarter, the upper section of the Mississippi River was closed for navigation because of icy conditions, so soybean shipments were first railed to St. Louis and then loaded onto barges destined for New Orleans. In the second quarter, barge shipments were made directly from Minneapolis and Davenport to New Orleans and no rail leg was required because the upper Mississippi River had been reopened. In the second quarter, there was an increase in barge rates as the shipments traveled longer distances. Truck and ocean rates also increased. However, for the second quarter, total transportation cost of shipping soybeans through the Gulf decreased as increases in truck, barge and ocean rates were offset by the fact that there was no additional rail cost. Increases in truck and rail costs pushed up the transportation cost of shipping through the PNW in the second quarter. In Brazil, the trucking rates fell during the quarter, which lowered the transportation cost to Europe and from North MT to China. There was a modest increase in the cost of shipping from South GO to China because increased ocean freight rates through the port of Paranagu were not offset by the decrease in truck rates.

Grain Transportation Report

September 6, 2012

The year-to-year transportation cost was lower in both the United States and Brazil. For the U.S. the drop was mostly because of lower barge rates. In Brazil, the lower year-to-year reduction in transportation cost was due to lower truck costs. Farm prices increased in the United States and Brazil at all locations from the previous quarter and from a year ago. In the United States, transportation costs represented 1011 percent of the landed costs to Hamburg, and 1416 percent of the landed costs to Shanghai. The transportation share of the landed costs for Brazilian soybeans to Hamburg ranged from 1724 percent, and to Shanghai ranged from 2026 percent.
Table 2-Quarterly costs of transporting soybeans from U.S. and Brazil to Shanghai, China
2011 2 nd qtr. 2012 1 st qtr. 2012 Percent change 2011 2012 2012 Percent change

Truck Barge Ocean1 Rail Total transportation2 Farm Value 3 Landed Cost Transport % of landed cost

11.34 37.26 51.58 100.18 465.42 565.60 17.71

2 nd qtr. Yr. to Yr. Qtr. to Qtr. 2 nd qtr. 1 st qtr. 2 nd qtr. Yr. to Yr. Qtr. to Qtr. United States (via U.S. Gulf) Minneapolis, MN Davenport, IA --$/mt---$/mt-9.14 11.66 2.82 27.57 11.34 9.14 11.66 2.82 27.57 12.53 28.18 -24.37 124.90 27.27 12.53 20.23 -25.82 61.45 48.33 31.61 49.07 88.91 502.16 591.07 15.04 Fargo, ND 11.66 25.71 54.89 92.26 493.59 585.85 15.75 -4.87 -11.25 7.89 4.50 1.53 -12.50 12.33 7.73 51.58 90.19 48.33 24.16 94.16 448.27 542.43 17.36 49.07 80.96 503.39 584.35 13.85 -4.87 -10.23 4.58 2.24 1.53 -14.02 12.30 7.73

101.61 447.05 548.66 18.52

481.34 571.53 15.78 Via PNW 11.34 28.88 53.90 94.12 471.54 565.66 16.64

Truck Ocean1 Rail Total transportation2 Farm Value 3 Landed Cost Transport % of landed cost

11.34 28.88 52.16 92.38 460.52 552.90 16.71

9.14 26.54 54.25 89.93 434.80 524.73 17.14

2.82 -10.98 5.23 -0.13 7.18 5.96

27.57 -3.13 1.18 2.59 13.52 11.65

Sioux Falls, SD 9.14 11.66 26.54 56.00 91.68 445.82 537.50 17.06 25.71 56.73 94.10 496.04 590.14 15.95

2.82 -10.98 5.25 -0.02 5.20 4.33

27.57 -3.13 1.30 2.64 11.26 9.79

Brazil North MT4 - Santos 5 --$/mt-117.52 110.07 -12.52 46.62 164.14 377.70 541.84 30.29 51.35 161.42 448.29 609.71 26.47 2.60 -8.22 15.96 8.40 South GO4 - Paranagua5 --$/mt-55.14 50.51 -28.16 52.32 107.46 401.58 509.04 21.11 57.63 108.14 428.40 536.54 20.16 0.02 -15.47 3.62 -0.89

Truck Ocean6 Total transportation2 Farm Value 7 Landed Cost Transport % of landed cost
1 3 4 5 6 7

125.83 50.05 175.88 386.58 562.46 31.27

-6.34 10.15 -1.66 18.69 12.53

70.31 57.62 127.93 413.45 541.38 23.63

-8.40 10.15 0.63 6.68 5.40

Source: O'Neil Commodity Consulting Source: USDA/NASS Producing regions: MT= Mato Grosso, GO = Gois Export ports Source: ESALQ/ USP (University of So Paulo, Brazil) and USDA/AMS Source: Companhia Nacional de Abastecimento (CONAB) www.conab.gov.br

Note: Total may not add exactly due to rounding

Market Outlook: From January through June, 9.81 million metric tons (mmt) of U.S. soybeans were exported to China; approximately 2 mmt were exported during the second quarter113 percent of the same period last year. The value of the second quarter exports was $1.12 billion dollar, 124 percent above the same period last year. During the second quarter, 0.31 mmt of U.S. soybeans, valued at $165 million, were exported to Europe, compared to only 636 mt during the same period last year. Chinese demand for U.S. soybeans is fueled by a strong demand for protein meals. Chinas imports of soybeans are forecast to reach 60 mmt during the marketing year (MY) 2012/13, compared to 57 mmt in MY11/12, which was revised upward from a previous estimate of 55.5 mmt (USDA, FAS, GAIN Report No. CH12042). As grain prices remain relatively high and Chinese demand for soybeans remains strong, it is essential that the transportation costs remain low to keep U.S. exports competitive. For more on soybean transportation, see Brazil Soybean Transportation. Surajudeen.olowolayemo@ams.usda.gov

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September 6, 2012

Grain Transportation Indicators

Table 1

Grain Transport Cost Indicators

Truck Week ending 09/05/12 08/29/12
1

Rail Unit Train Shuttle 183 186 227

16 %

Barge Gulf 278

14 %

Ocean Pacific 181

- 4%

277
1%

219
- 2%

274

227

243

224

188

Indicator: Base year 2000 = 100; Weekly updates include truck = diesel ($/gallon); rail = near-month secondary rail market bid and monthly tariff rate with fuel surcharge ($/car); barge = Illinois River barge rate (index = percent of tariff rate); and ocean = routes to Japan ($/metric ton) Source: Transportation & Marketing Programs/AMS/USDA

Table 2

Market Update: U.S. Origins to Export Position Price Spreads ($/bushel)

Commodity Corn Corn Soybean HRW HRS
Note: nq = no quote Source: Transportation & Marketing Programs/AMS/USDA

Origin--Destination IL--Gulf NE--Gulf IA--Gulf KS--Gulf ND--Portland

8/31/2012 -0.30 -0.47 -1.12 -1.47 -2.01

8/24/2012 -0.20 -0.40 -0.97 -1.52 -2.07

The grain bid summary illustrates the market relationships for commodities. Positive and negative adjustments in differential between terminal and futures markets, and the relationship to inland market points, are indicators of changes in fundamental market supply and demand. The map may be used to monitor market and time differentials. Figure 1 Grain bid Summary

Grain Transportation Report

September 6, 2012

Rail Transportation
Table 3

Rail Deliveries to Port (carloads)

Week ending 8/29/2012p 8/22/2012r 2012 YTDr 2011 YTDr 2012 YTD as % of 2011 YTD

Mississippi Gulf 1 629 6,894 21,963 31 708 90 27,358 33,971 Texas Gulf 224 578 25,285 63,592 40 58 35 77,515 83,492

Cross-Border Mexico 560 558 37,328 32,064 116 71 80 48,782 42,794

Pacific Northwest 3,208 4,648 138,217 128,216 108 159 137 191,092 177,896

Atlantic & East Gulf 39 246 11,587 16,882 69 74 67 24,088 32,780 Total 4,032 6,659 219,311 262,717 83 127 97 368,835 370,933

Last 4 weeks as % of 2011 2 Last 4 weeks as % of 4-year avg.2

Total 2011 Total 2010
1 2

Data is incomplete as it is voluntarily provided Compared with same 4-weeks in 2011 and prior 4-year average.

YTD = year-to-date; p = preliminary data; r = revised data; YTD PNW carloads includes revisions back to August 2011 ; n/a = not available Source: Transportation & Marketing Programs/AMS/USDA

Railroads originate approximately 29 percent of U.S. grain shipments. Trends in these loadings are indicative of market conditions and expectations.

Figure 2

Rail Deliveries to Port

Carloads - 4-week running average
6,000

5,000
4,000

3,000
2,000

1,000
0

03/03/10

04/28/10

08/18/10

12/08/10

02/02/11

05/25/11

07/20/11

11/09/11

02/29/12

04/25/12

08/15/12

10/10/12

01/06/10

06/23/10

10/13/10

03/30/11

09/14/11

01/04/12

06/20/12

Pacific Northwest: 4wks. ending 8/29--up 59% from same period last year; up 37% from 4-year average Texas Gulf: 4 wks. ending 8/29-- down 42% from same period last year; down 65% from 4-year average Miss. River: 4 wks. Ending 8/29-- up 608 % from same period last year; down 10% from 4-year average Cross-border Mexico: 4 wks. ending 8/29 -- down 29% from same period last year; down 20% from 4-year average

Source: Transportation & Marketing Programs/AMS/USDA

Grain Transportation Report

September 6, 2012

12/05/12

Table 4

Class I Rail Carrier Grain Car Bulletin (grain carloads originated)

East Week ending 08/25/12 This week last year 2012 YTD 2011 YTD 2012 YTD as % of 2011 YTD Last 4 weeks as % of 20111 Last 4 weeks as % of 3-yr avg. 1 Total 2011
1

CSXT 1,043 1,034 59,312 63,849 93 81 69 98,506

NS 2,741 2,336 95,974 100,662 95 121 110 150,869

BNSF 10,231 8,880 328,420 360,203 91 118 105 546,090

West KCS 468 623 17,120 22,831 75 75 86 34,683

U.S. total UP 4,471 5,173 172,228 200,247 86 84 77 292,401 18,954 18,046 673,054 747,792 90 105 95 1,122,549 CN

Canada CP 4,866 5,452 161,262 173,251 93 89 96 269,399 3,891 3,406 130,678 130,013 101 117 106 200,610

As a percent of the same period in 2009 and the prior 3-year average. YTD = year-to-date.

Source: Association of American Railroads (www.aar.org)

Figure 3

Total Weekly U.S. Class I Railroad Grain Car Loadings

30,000 For 4 weeks ending August 25: up 0.4 percent from last week; up 4.6 percent from last year; and down 6 percent from the 3-year average.

Carloads - 4-week running avg.

28,000 26,000 24,000 22,000

20,000 18,000

09/24/11

01/14/12

02/11/12

06/02/12

06/30/12

10/22/11

11/19/11

12/17/11

03/10/12

04/07/12

05/05/12

07/28/12

08/25/12

Current year 4-week period ending

Source: Association of American Railroads

3-year average

Table 5

Railcar Auction Offerings1 ($/car)2

Week ending 8/30/2012 BNSF COT grain units COT grain single-car5 UP 4 GCAS/Region 1 GCAS/Region 2
1 2 3 4

Delivery period
Sep-12 0 0..6 no bids no bids Sep-11 no offer no offer no bids no bids Oct-12 0 0 . . 23 no bids no bids Oct-11 no offer no offer no bids 16 Nov-12 no bids no offer no bids no bids Nov-11 no offer no offer no bids 1 Dec-12 no offer no offer n/a n/a Dec-11 no offer 0 . . 100 n/a n/a

Auction offerings are for single-car and unit train shipments only. Average premium/discount to tariff, last auction BNSF - COT = Certificate of Transportation; north grain and south grain bids were combined effective the week ending 6/24/06. UP - GCAS = Grain Car Allocation System Region 1 includes: AR, IL, LA, MO, NM, OK, TX, WI, and Duluth, MN. Region 2 includes: CO, IA, KS, MN, NE, WY, and Kansas City and St. Joseph, MO. Range is shown because average is not available. Not available = n/a.

Source: Transportation & Marketing Programs/AMS/USDA.

Grain Transportation Report

September 6, 2012

09/22/12

16,000

The secondary rail market information reflects trade values for service that was originally purchased from the railroad carrier as some form of guaranteed freight. The auction and secondary rail values are indicators of rail service quality and demand/ supply.
Figure 4

Bids/Offers for Railcars to be Delivered in September 2012, Secondary Market

500
Average premium/discount to tariff ($/car)
Non-shuttle bids/offers rose $3 this week and are $21.50 below the peak. Shuttle bids/offers fell $30.50 from last week and are $297 below the peak.

300 100

-100 -300 -500

2/16/12
BNSF Non-shuttle $37 Shuttle -$244 UP $0 -$550

6/7/12

7/5/12

3/15/12

4/12/12

5/10/12

8/2/12

3/1/12

8/30/12

3/29/12

4/26/12

5/24/12

6/21/12

7/19/12

8/16/12

Non-shuttle Non-shuttle avg. 2009-11 (same week) Non-shuttle bids include unit-train and single-car bids. n/a = not available. Source: Transportation & Marketing Programs/AMS/USDA

Shuttle Shuttle avg. 2009-11 (same week)

Figure 5

Bids/Offers for Railcars to be Delivered in October 2012, Secondary Market

1000
Average premium/discount to tariff ($/car)

800 600 400

200

There were no non-shuttle bids/offers this week. Shuttle bids/offers rose $50 this week and are $325 below the peak.

0 -200 -400
3/22/12
BNSF Non-shuttle n/a Shuttle n/a UP n/a $275

Non-shuttle Non-shuttle avg. 2009-11 (same week)

Shuttle Shuttle avg. 2009-11 (same week)

Non-shuttle bids include unit-train and single-car bids. n/a = not available. Source: Transportation & Marketing Programs/AMS/USDA

Grain Transportation Report

September 6, 2012

10/18/12

4/5/12

5/3/12

8/9/12

5/31/12

6/28/12

7/26/12

8/23/12

9/6/12

10/4/12

4/19/12

5/17/12

6/14/12

7/12/12

9/20/12

9/13/12

Figure 6

Bids/Offers for Railcars to be Delivered in November 2012, Secondary Market

800
Average premium/discount to tariff ($/car)
BNSF n/a n/a UP n/a n/a

600 400
200

Non-shuttle Shuttle

0
-200
There were no non-shuttle bids/offers this week. There were no shuttle bids/offers this week.

10/18/12

Non-shuttle
Non-shuttle avg. 2009-11 (same week)

Shuttle
Shuttle avg. 2009-11 (same week)

Non-shuttle bids include unit-train and single-car bids. n/a = not available. Source: Transportation & Marketing Programs/AMS/USDA

Table 6

Weekly Secondary Railcar Market ($/car)1

Week ending 8/30/2012 Non-shuttle BNSF-GF Change from last week Change from same week 2011 UP-Pool Change from last week Change from same week 2011 Shuttle 2 BNSF-GF Change from last week Change from same week 2011 UP-Pool Change from last week Change from same week 2011
1 2

Delivery period Sep-12 37 12 33 (6) (13) (244) 64 206 (550) (125) (50) Oct-12 n/a n/a n/a n/a n/a n/a n/a n/a n/a 275 25 (225) Nov-12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Dec-12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Jan-13 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Feb-13 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Average premium/discount to tariff, $/car-last week

Shuttle bids are a new data series; prior to this we provided only non-shuttle rates. Note: Bids listed are market INDICATORS only & are NOT guaranteed prices, n/a = not available; GF = guaranteed freight; Pool = guaranteed pool Sources: Transportation and Marketing Programs/AMS/USDA Data from Atwood/ConAgra, Harvest States Co-op, James B. Joiner Co., Tradewest Brokerage Co.

Grain Transportation Report

11/15/12

5/3/12

8/9/12

4/19/12

5/17/12

5/31/12

6/14/12

6/28/12

7/12/12

7/26/12

8/23/12

9/6/12

-400

9/20/12

10/4/12

11/1/12

September 6, 2012

Table 7

Tariff Rail Rates for Unit and Shuttle Train Shipments 1

Effective date: Tariff 9/1/2012 Unit train Origin region* Destination region* rate/car Fuel surcharge per car Percent Tariff plus surcharge per: bushel2 metric ton change Y/Y3

Wheat

Wichita, KS Grand Forks, ND Wichita, KS Wichita, KS Sioux Falls, SD Northwest KS Amarillo, TX Champaign-Urbana, IL Toledo, OH Des Moines, IA Indianapolis, IN Indianapolis, IN Des Moines, IA

St. Louis, MO Duluth-Superior, MN Los Angeles, CA New Orleans, LA Galveston-Houston, TX Galveston-Houston, TX Los Angeles, CA New Orleans, LA Raleigh, NC Davenport, IA Atlanta, GA Knoxville, TN Little Rock, AR Los Angeles, CA New Orleans, LA Huntsville, AL Raleigh, NC Huntsville, AL New Orleans, LA Portland, OR Galveston-Houston, TX Albany, NY Portland, OR Galveston-Houston, TX Portland, OR Portland, OR Tacoma, WA New Orleans, LA Galveston-Houston, TX Amarillo, TX Tacoma, WA Stockton, CA Tacoma, WA Portland, OR Tacoma, WA New Orleans, LA Huntsville, AL Portland, OR

$3,144 $3,537 $6,026 $3,645 $5,573 $3,912 $4,112 $3,038 $4,382 $1,934 $3,821 $3,273 $3,074 $4,985 $3,179 $3,497 $4,453 $3,189 $3,382 $3,481 $3,634 $3,645 $4,963 $5,984 $4,880 $4,800 $4,760 $2,857 $3,310 $3,430 $4,800 $4,200 $5,040 $5,030 $4,930 $3,420 $2,672 $4,720

$167 $92 $474 $294 $389 $322 $448 $332 $381 $70 $286 $183 $207 $602 $357 $271 $384 $183 $332 $273 $212 $357 $471 $491 $528 $574 $525 $332 $306 $260 $569 $589 $525 $574 $467 $383 $271 $540

$32.88 $36.04 $64.55 $39.11 $59.21 $42.04 $45.28 $33.47 $47.30 $19.90 $40.78 $34.32 $32.58 $55.48 $35.12 $37.41 $48.03 $33.49 $36.88 $37.28 $38.20 $39.74 $53.96 $64.30 $53.70 $53.36 $52.49 $31.67 $35.91 $36.64 $53.32 $47.55 $55.27 $55.65 $53.60 $37.76 $29.22 $52.24

$0.89 $0.98 $1.76 $1.06 $1.61 $1.14 $1.23 $0.91 $1.29 $0.54 $1.11 $0.93 $0.89 $1.51 $0.96 $1.02 $1.31 $0.91 $1.00 $1.01 $1.04 $1.08 $1.47 $1.75 $1.46 $1.45 $1.43 $0.86 $0.98 $1.00 $1.45 $1.29 $1.50 $1.51 $1.46 $1.03 $0.80 $1.42

4 13 4 3 2 3 2 6 14 4 17 17 4 1 -4 17 14 20 -2 6 13 3 4 3 2 1 1 5 2 2 1 1 2 2 2 -8 4 3

Corn

Soybeans

Des Moines, IA Minneapolis, MN Toledo, OH Indianapolis, IN Indianapolis, IN Champaign-Urbana, IL

Shuttle Train

Wheat

Corn

Great Falls, MT Wichita, KS Chicago, IL Grand Forks, ND Grand Forks, ND Northwest KS Minneapolis, MN Sioux Falls, SD Champaign-Urbana, IL Lincoln, NE Des Moines, IA Minneapolis, MN Council Bluffs, IA Sioux Falls, SD Minneapolis, MN Fargo, ND Council Bluffs, IA Toledo, OH Grand Island, NE

Soybeans

A unit train refers to shipments of at least 25 cars. Shuttle train rates are available for qualified shipments of 75-120 cars that meet railroad efficiency requirements.

2 3

Approximate load per car = 111 short tons (100.7 metric tons): corn 56 lbs./bu., wheat & soybeans 60 lbs./bu. Percentage change year over year calculated using tariff rate plus fuel surchage

Sources: www.bnsf.com, www.cpr.ca, www.csx.com, www.uprr.com *Regional economic areas defined by the Bureau of Economic Analysis (BEA)

Grain Transportation Report

September 6, 2012

Table 8

Tariff Rail Rates for U.S. Bulk Grain Shipments to Mexico

Effective date: Commodity Wheat 9/1/2012 Origin state MT OK KS TX IA SD NE SD MO SD MO NE IA KS OK TX NE KS NE NE Destination region Chihuahua, CI Cuautitlan, EM Guadalajara, JA Salinas Victoria, NL Guadalajara, JA Penjamo, GJ Queretaro, QA Salinas Victoria, NL Tlalnepantla, EM Torreon, CU Bojay (Tula), HG Guadalajara, JA El Castillo, JA5 Torreon, CU Cuautitlan, EM Guadalajara, JA Penjamo, GJ Queretaro, QA Salinas Victoria, NL Torreon, CU Tariff rate/car1 $7,741 $6,837 $7,444 $3,725 $7,699 $7,776 $7,097 $6,522 $6,538 $6,522 $7,350 $7,904 $8,255 $6,421 $5,730 $6,653 $7,426 $6,460 $5,153 $6,068 Fuel surcharge Tariff plus surcharge per: 3 bushel3 per car2 metric ton $498 $84.19 $2.29 $605 $76.04 $2.07 $585 $82.04 $2.23 $228 $40.39 $1.10 $688 $652 $611 $496 $594 $546 $580 $664 $648 $412 $495 $424 $592 $372 $436 $486 $85.69 $86.12 $78.75 $71.70 $72.87 $72.22 $81.03 $87.54 $90.97 $69.81 $63.61 $72.31 $81.93 $69.80 $57.10 $66.97 $2.17 $2.19 $2.00 $1.82 $1.85 $1.83 $2.20 $2.38 $2.47 $1.90 $1.61 $1.84 $2.08 $1.77 $1.45 $1.70 Percent change Y/Y4 2 3 -1 1 1 5 2 18 6 3 6 2 4 3 5 4 4 4 5 2

Corn

Soybeans

Sorghum

Rates are based upon published tariff rates for high-capacity shuttle trains. Shuttle trains are available for qualified Fuel surcharge adjusted to reflect the change in Ferrocarril Mexicano, S.A. de C.V railroad fuel surcharge policy as of 10/01/2009 Approximate load per car = 97.87 metric tons: Corn & Sorghum 56 lbs/bu, Wheat & Soybeans 60 lbs/bu Percentage change year over year calculated using tariff rate plus fuel surchage Beginning 12/6/10, El Castillo, JA replaced Penjamo, GJ as the destination

shipments of 75--110 cars that meet railroad efficiency requirements.

2 3 4 5

Sources: www.bnsf.com, www.uprr.com, www.kcsouthern.com

Figure 7

Railroad Fuel Surcharges, North American Weighted Average 1

$0.80
September 2012: $0.296, up 0.3% from last month's surcharge of $0.295/mile; down 9% from the September 2011 surcharge of $0.327/mile; and up 24% from the September prior 3-year average of $0.239/mile.

Dollars per railcar mile

$0.70 $0.60 $0.50 $0.40 $0.30

$0.20 $0.10

Fuel Surcharge* ($/mile/railcar)

3-year Monthly Average

$0.296

Weighted by each Class I railroad's proportion of grain traffic for the prior year. * Mileage-based fuel surcharges for March and April 2007 are estimated. Beginning January 2009, the Canadian Pacific fuel surcha rge is computed by a monthly average of the bi-weekly fuel surcharge. ** BNSF strike price (diesel price when fuel surcharges begin) changed from $1.25/gal. to $2.50/gal starting March 1, 2011. As a result, the weighted average fuel surcharge for March 2011 was $0.227/mile instead of $0.331/mile . Sources: www.bnsf.com, www.cn.ca, www.cpr.ca, www.csx.com, www.kcsi.com, www.nscorp.com, www.uprr.com

Grain Transportation Report

Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12
10 September 6, 2012

$0.00

Barge Transportation
Figure 8

Illinois River Barge Freight Rate 1,2

1000 900 800 700 600 500 400 300 200 100 0
Weekly rate 3-year avg. for the week

Percent of tariff

Week ending September 4: up 14 perent from last week, up 4 percent from last year, and up 19 percent from the 3-yr average

2/7/2012

3/6/2012

4/3/2012

9/6/2011

5/1/2012

8/7/2012

11/29/2011

12/27/2011

10/18/2011

11/15/2011

12/13/2011

10/4/2011

1/10/2012

1/24/2012

2/21/2012

3/20/2012

4/17/2012

5/29/2012

6/26/2012

7/24/2012

9/20/2011

11/1/2011

5/15/2012

6/12/2012

7/10/2012

Rate = percent of 1976 tariff benchmark index (1976 = 100 percent); 2 4-week moving average of the 3-year average.

Source: Transportation & Marketing Programs/AMS/USDA

Table 9

Weekly Barge Freight Rates: Southbound Only

Twin MidCities Mississippi Rate 1 $/ton 9/4/2012 8/28/2012 9/4/2012 8/28/2012 Last year 3-year avg. 2 Rate 1
1

Lower Illinois River 500 438 23.20 20.32 9 19 550 413

St. Louis Cincinnati 533 500 21.27 19.95 30 40 -2 508 325 495 438 23.22 20.54 2 10 6 533 400

Lower Ohio 495 438 20.00 17.70 2 10 6 533 400

8/21/2012

CairoMemphis 588 525 18.46 16.49 51 58 550 300

475 425 29.40 26.31 0 8 575 -

495 413 26.33 21.97 8 17 538 -

Current week % change from the same week:

October December

Rate = percent of 1976 tariff benchmark index (1976 = 100 percent); 2 4-week moving average; ton = 2,000 pounds: - closed for winter

Source: Transportation & Marketing Programs/AMS/USDA

Calculating barge rate per ton: (Index * 1976 tariff benchmark rate per ton)/100 Select applicable index from market quotes included in tables on this page. The 1976 benchmark rates per ton are provided in map (see figure 9).

Grain Transportation Report

11

September 6, 2012

9/4/2012

Figure 10

Barge Movements on the Mississippi River1 (Locks 27 - Granite City, IL)

1,000 900 800 700 Week ending September 1: Down 48.4% from last year, and down 71.4% compared to the 3-yr average. Soybeans Wheat Corn 3-yr avg

1,000 tons

600 500

400 300 200 100

0

09/03/11

09/17/11

02/18/12

03/03/12

03/17/12

03/31/12

08/18/12

09/01/12

09/15/12

The 3-year average is a 4-week moving average.

Source: U.S. Army Corps of Engineers (www.mvr.usace.army.mil/mvrimi/omni/webrpts/default.asp)

Table 10

Barge Grain Movements (1,000 tons)

Week ending 9/1/2012 Mississippi River Rock Island, IL (L15) Winfield, MO (L25) Alton, IL (L26) Granite City, IL (L27) Illinois River (L8) Ohio River (L52) Arkansas River (L1) Weekly total - 2012 Weekly total - 2011 2012 YTD1 2011 YTD 2012 as % of 2011 YTD Last 4 weeks as % of 20112 Total 2011
1 2

Corn 23 21 54 58 10 22 45 125 237 11,766 13,197 89 66 19,921

Wheat 0 5 5 5 0 23 4 32 41 1,397 1,130 124 54 1,460

Soybeans 19 43 62 68 12 25 4 97 55 7,149 4,771 150 191 8,553

Other 0 0 0 0 0 0 0 0 17 192 276 70 8 422

Total 42 68 120 131 22 70 53 254 349 20,503 19,374 106 90 30,356

Weekly total, YTD (year-to-date) and calendar year total includes Miss/27, Ohio/52, and Ark/1; "Other" refers to oats, barley, sorghum, and rye. As a percent of same period in 2011.

Note: Total may not add exactly, due to rounding Source: U.S. Army Corps of Engineers (www.mvr.usace.army.mil/mvrimi/omni/webrpts/default.asp)

Grain Transportation Report

12

September 6, 2012

09/29/12

10/01/11

10/15/11

10/29/11

11/12/11

11/26/11

12/10/11

12/24/11

01/07/12

01/21/12

02/04/12

04/14/12

04/28/12

05/12/12

05/26/12

06/09/12

06/23/12

07/07/12

07/21/12

08/04/12

Figure 11

Upbound Empty Barges Transiting Mississippi River Locks 27, Arkansas River Lock and Dam 1, and Ohio River Locks and Dam 52
700
600

Week ending September 1: 367 total barges, up 8 barges from the previous week but 15.4 percent lower than the 3-year average.

Number of Barges

500
400

300
200

100
0

5/12/12

5/26/12

7/21/12

Lock 27

Lock 1

Lock 52

Source: U.S. Army Corps of Engineers

Figure 12

Grain Barges for Export in New Orleans Region

1000
Downbound Grain Barges Locks 27, 1, and 52 Grain Barges Unloaded in New Orleans

900 800 700

Number of barges

600

500 400 300

200

100 0

Week ending Sep 1: 163 grain barges moved down river, down 11.4 percent from the previous week, 228 grain barges were unloaded in New Orleans, down 58.8 percent from the previous week.
3/10/12 3/17/12 3/24/12 3/31/12 4/14/12 4/21/12 4/28/12 5/12/12
5/19/12 5/26/12 6/16/12 6/23/12 6/30/12 7/14/12 7/21/12 7/28/12 8/11/12 8/18/12 8/25/12

4/7/12

5/5/12

3/3/12

6/2/12

6/9/12

7/7/12

8/4/12

8/18/12

4/28/12

6/23/12

7/7/12

6/9/12

8/4/12

Source: U.S. Army Corps of Engineers and GIPSA

Grain Transportation Report

13

September 6, 2012

9/1/12

Truck Transportation
The weekly diesel price provides a proxy for trends in U.S. truck rates as diesel fuel is a significant expense for truck grain movements.

Table 11

Retail on-Highway Diesel Prices , Week Ending 9/3/2012 (US $/gallon)

Change from Re gion I East Coast New England Central Atlantic Lower Atlantic II III IV V Midwest
2

Location

Price 4.104 4.194 4.153 4.051 4.072 4.026 4.217 4.424 4.343 4.493 4.127

We e k ago 0.032 0.062 0.024 0.032 0.022 0.045 0.068 0.071 0.055 0.084 0.038

Ye ar ago 0.218 0.200 0.166 0.218 0.220 0.226 0.327 0.443 0.435 0.259

Gulf Coast3 Rocky Mountain West Coast West Coast less California California

Total
1 2

U.S.
3

Diesel fuel prices include all taxes. Prices represent an average of all types of diesel fuel. Same as North Central Same as South Central

Source: Energy Information Administration/U.S. Department of Energy (www.eia.doe.gov)

Figure 13

Weekly Diesel Fuel Prices, U.S. Average

5.0 4.5 4.0 3.5
3.0
Week ending September 3: Up 4 cents from the previous week and 26 cents higher than the same week last year.

Last year

Current Year

$ per gallon

2.5 2.0 1.5

1.0 0.5 0.0

03/05/12 03/19/12 04/02/12 04/23/12 05/07/12 05/21/12 06/25/12 07/09/12 07/23/12 08/13/12 08/27/12
03/12/12 03/26/12 04/09/12 04/16/12 04/30/12 05/14/12 05/28/12 06/04/12 06/11/12 06/18/12 07/02/12 07/16/12 07/30/12 08/06/12 08/20/12 09/03/12

Source: Retail On-Highway Diesel Prices, Energy Information Administration, Dept. of Energy

Grain Transportation Report

14

September 6, 2012

Grain Exports
Table 12

U.S. Export Balances and Cumulative Exports (1,000 metric tons)

Wheat Week ending Export Balances 1 8/23/2012 This week year ago Cumulative exports-marketing year 2011/12 YTD 2010/11 YTD YTD 2011/12 as % of 2010/11 Last 4 wks as % of same period 2010/11 2010/11 Total 2009/10 Total
1 2

Corn DUR 107 141 131 149 88 76 979 983 All wheat 4,698 5,084 6,230 7,118 88 96 32,984 21,400 2,021 3,540 37,664 44,569 85 76 44,569 47,700

Soybeans

Total

HRW 1,502 1,746

2

SRW 646 652 904 1,066 85 100 2,828 2,733

HRS 1,564 1,537 1,294 1,676 77 100 8,623 5,329

SWW 879 1,008 1,172 1,187 99 111 4,717 3,897

2,497 2,478 36,312 39,753 91 131 39,753 39,285

9,216 11,102 80,206 91,440 88 98 117,306 108,385

2,729 3,040 90 84 15,837 8,458

Current unshipped export sales to date Shipped export sales to date; the new marketing year is now in effect for wheat

Note: YTD = year-to-date. Marketing Year: wheat = 6/01-5/31, corn & soybeans = 9/01-8/31 Source: Foreign Agricultural Service/USDA (www.fas.usda.gov)

Table 13

Top 5 Importers1 of U.S. Corn

Week ending 08/23/12 Total Commitments 2 2012/13 2011/12
- 1,000 mt -

% change current MY from last MY (17) 35 (40) 454 (53) 1 (18)

Exports 3 2010/11
- 1,000 mt -

2010/11 Last MY 14,949 7,121 6,172 978 2,815 32,035 48,109

103%

Next MY Current MY Japan Mexico Korea China* Taiwan Top 5 importers Total US corn export sales
% of Projected

1,555 2,263 250 801 42 4,912 8,021

24%

12,411 9,620 3,699 5,420 1,313 32,463 39,685

101%

14,279 7,019 6,104 978 2,393 30,772 46,590

Change from prior week Top 5 importers' share of U.S. corn export sales USDA forecast, August 2012 Corn Use for Ethanol USDA forecast, Ethanol August 2012
(n) indicates negative number.
1 2

168 61% 33,020 114,300

(34) 82% 39,370 127,000

(321) 67% 46,590 127,534

(15) (0.4)

Based on FAS Marketing Year Ranking Reports - www.fas.usda.gov; Marketing year (MY) = Sep 1 - Aug 31.

Cumulative Exports (shipped) + Outstanding Sales (unshipped), FAS Weekly Export Sales Report, or Export Sales Query-http://www.fas.usda.gov/esrquery/
3

FAS Marketing Year Final Reports - www.fas.usda.gov/export-sales/myfi_rpt.htm.

*China -- New to the Top 5 in the 2011/12 Marketing Year, replacing Egypt.

Grain Transportation Report

15

September 6, 2012

Table 14

Top 5 Importers of U.S. Soybeans

Week Ending 08/23/2012 Total Commitments 2 2012/13 2011/12
- 1,000 mt -

% change current MY from last MY (4) (3) (16) (53) (9) (8) (8)

Exports 3 2010/11
- 1,000 mt -

2010/11 Last MY 25,595 3,284 2,254 2,599 1,827 35,560 42,231

103%

Next MY Current MY China Mexico Japan EU Indonesia Top 5 importers Total US soybean export sales
% of Projected

11,230 431 156 232 85 12,134 17,559

58%

24,646 3,197 1,889 1,230 1,668 32,631 38,809

106%

24,445 3,215 1,887 2,607 1,680 33,833 40,850

Change from prior week Top 5 importers' share of U.S. soybean export sales USDA forecast, August 2012
(n) indicates negative number.
1 2

731 69% 30,210

(10) 84% 36,740

(0.1) 84% 40,850

(10)

Based on FAS 2008/09 Marketing Year Ranking Reports - www.fas.usda.gov; Marketing year (MY) = Sep 1 - Aug 31.

Cumulative Exports (shipped) + Outstanding Sales (unshipped), FAS Weekly Export Sales Report, or Export Sales Query-http://www.fas.usda.gov/esrquery/
3

FAS Marketing Year Final Reports - www.fas.usda.gov/export-sales/myfi_rpt.htm.

Table 15

Top 10 Importers of All U.S. Wheat

Week Ending 08/23/2012 Total Commitments 2 2012/13 2011/12 Current MY Last MY
- 1,000 mt -

% change current MY from last MY (17) (2) (14) (19) 57 (47) 74 (11) 51 (63) (8) (10)

Exports 3 2011/12
- 1,000 mt -

Japan Mexico Nigeria Philippines Korea Egypt Taiwan Indonesia Venezuela Iraq Top 10 importers Total US wheat export sales
% of Projected

1,430 1,457 1,154 894 780 131 439 332 362 209 7,187 10,928
33%

1,729 1,487 1,337 1,104 497 247 253 374 239 564 7,830 12,202
43%

3,512 3,496 3,248 2,039 1,983 950 888 830 594 572 18,111 28,530

Change from prior week Top 10 importers' share of U.S. wheat export sales USDA forecast, August 2012

509
66%

369
64% 63%

32,660

28,560

14

(n) indicates negative number. 1 Modified from the FAS 2011/12 Marketing Year Ranking Reports - www.fas.usda.gov; Marketing year = Jun 1 - May 31.
2

Cumulative Exports (shipped) + Outstanding Sales (unshipped), FAS Weekly Export Sales Report, or Export Sales Query--http://www.fas.usda.gov/esrquery/
3

FAS Marketing Year Final Reports - www.fas.usda.gov/export-sales/myfi_rpt.htm.

Grain Transportation Report

16

September 6, 2012

Table 16 Grain Inspections for Export by U.S. Port Region (1,000 metric tons) Port regions Pacific Northwest Wheat Corn Soybeans Total Mississippi Gulf Wheat Corn Soybeans Total Texas Gulf Wheat Corn Soybeans Total Interior Wheat Corn Soybeans Total Great Lakes Wheat Corn Soybeans Total Atlantic Wheat Corn Soybeans Total
2

Week ending 08/30/12 456 0 66 521 123 88 304 515 111 0 0 111 3 74 33 110 0 0 1 1 0 0 8 8

Previous Week1 410 2 67 480 46 287 334 668 53 3 0 56 5 80 67 152 0 10 0 10 1 0 8 8

Current Week as % of Previous 2012 YTD1 111 0 97 109 266 31 91 77 211 0 n/a 198 71 92 50 73 n/a 0 n/a 11 47 n/a 103 96 9,294 4,910 5,676 19,880 4,184 13,176 12,027 29,387 4,243 329 5 4,576 784 5,030 2,816 8,630 193 56 149 397 237 106 616 959

2011 YTD1 9,926 6,773 3,651 20,350 3,809 17,867 10,541 32,218 8,748 810 763 10,321 758 4,888 2,617 8,263 744 124 22 890 641 194 476 1,311

2012 YTD as % of 2011 YTD 94 72 155 98 110 74 114 91 49 41 1 44 103 103 108 104 26 45 666 45 37 54 130 73

Last 4-weeks as % of 2011 3-yr. avg. 147 35 178 116 73 54 270 93 72 n/a n/a 78 72 104 53 49 10 32 n/a 19 7 58 205 72 170 22 137 103 94 47 164 78 61 23 0 54 66 64 122 78 5 51 0 12 6 23 179 52 107 43 153 80

Total 2011

13,995 9,198 7,321 30,513 5,031 26,267 19,262 50,560 10,837 1,021 926 12,784 1,110 7,509 4,273 12,892 1,038 178 382 1,598 686 295 1,042 2,022 32,697 44,466 33,205 110,369

U.S. total from ports Wheat 693 515 135 18,934 24,627 77 104 Corn 162 383 42 23,606 30,657 77 53 Soybeans 412 476 87 21,289 18,071 118 192 Total 1,267 1,374 92 63,829 73,354 87 92 1 Data includes revisions from prior weeks; some regional totals may not add exactly due to rounding. 2 Total includes only port regions shown above; Interior land-based shipments now included. Source: Grain Inspection, Packers and Stockyards Administration/USDA (www.gipsa.usda.gov); YTD= year-to-date; n/a = not applicable

The United States exports approximately one-quarter of the grain it produces. On average, this includes nearly 45 percent of U.S.-grown wheat, 35 percent of U.S.-grown soybeans, and 20 percent of the U.S.-grown corn. Approximately 59 percent of the U.S. export grain shipments departed through the U.S. Gulf region in 2011.

Grain Transportation Report

17

September 6, 2012

Figure 14

U.S. grain inspected for export (wheat, corn, and soybeans)

180 160 For the week ending August 30: 46.9 mbu, down 9% from the previous week, down 18.4% from same week last year, and 35% below the 3year average

Million bushels (mbu)

140 120 100 80 60 40

20 0

02/03/11

04/28/11

07/21/11

09/15/11

12/08/11

03/01/12

04/26/12

07/19/12

10/11/12

Current week

3-year average.

Source: Grain Inspection, Packers and Stockyards Administration/USDA (www.gipsa.usda.gov) Note: 3-year average consists of 4-week running average

Figure 15

U.S. Grain Inspections: U.S. Gulf and PNW1 (wheat, corn, and soybeans)
80 70

Miss. Gulf PNW

Texas Gulf 3-Year avg - Miss. Gulf 3-Year avg - PNW

Million bushels (mbu)

60 50
40 30 20

3-Year avg - TX Gulf

19.1*

19.1*

10 0
10/5/10 11/5/11 10/5/12
11/5/10 12/5/10 10/5/11 12/5/11

4.1*

11/5/12

Source: Grain Inspection, Packers and Stockyards Administration/USDA (www.gipsa.usda.gov); *mbu, this week. August 30 % change from: Last week Last year (same week) 3-yr avg. (4-wk mov. avg.) M S Gulf down 24 down 16 down 43 TX Gulf up 97 down 38 down 46 U.S. Gulf down 15 down 21 down 44 PNW up 9 up 12 down 0.1

Grain Transportation Report

18

September 6, 2012

12/5/12

9/5/10

1/5/11

4/5/11

5/5/11

8/5/11

6/5/12

7/5/12

9/5/12

8/5/10

2/5/11

3/5/11

6/5/11

7/5/11

9/5/11

1/5/12

2/5/12

3/5/12

4/5/12

5/5/12

8/5/12

12/06/12

01/06/11

03/03/11

03/31/11

05/26/11

06/23/11

08/18/11

10/13/11

11/10/11

01/05/12

02/02/12

03/29/12

05/24/12

06/21/12

08/16/12

09/13/12

11/08/12

Ocean Transportation
Table 17

Weekly Port Region Grain Ocean Vessel Activity (number of vessels)

Gulf Date 8/30/2012 8/23/2012 2011 range 2011 avg. In port 16 21 (14..65) 31 Loaded 7-days 29 29 (28..54) 38 Due next 10-days 52 48 (34..83) 53 Pacific Northwest In port 8 14 (5..25) 15 Vancouver B.C. In port n/a n/a (1..20) 12

Source: Transportation & Marketing Programs/AMS/USDA

Figure 16 U.S. Gulf1 Ve sse l Loading Activity 100 90 80 70 60 50 40 30 20 10 0

Number of vessels

Week ending August 30 Change from last year Change from 4-year avg.

Loaded -9.4% -15.3%

Due 33.3% -4.6%

04/26/2012

05/24/2012

06/21/2012

07/19/2012

08/02/2012

08/16/2012

Loaded Last 7 Days Lo aded 4 Year Average

Source:Transportation & M arketing Programs/AMS/USDA

Due Next 10 days

Grain Transportation Report

19

September 6, 2012

08/30/2012

05/10/2012

06/07/2012

07/05/2012

Figure 17

Grain Vessel Rates, U.S. to Japan

70
60
Ocean rates for Aug '12 Gulf Change from Aug '11 -4.7% Change from 4-year avg. -30.2% PNW Spread -11.4% 4.5% -29.8% -30.6%

50

US$/metric ton

40

30
20

10
0

Oct. 10

Dec. 10

Oct. 11

Dec. 11

Apr. 11

Aug. 10

Aug. 11

Apr. 12

Spread Gulf vs. PNW to Japan

Rate Gulf to Japan

Rate PNW to Japan

Source: O'Neil Commodity Consulting

Table 18

Ocean Freight Rates For Selected Shipments, Week Ending 09/01/2012

Export region U.S. Gulf U.S. Gulf U.S. Gulf U.S. Gulf U.S. Gulf PNW Australia Brazil Brazil Brazil Brazil Mexico River Plate River Plate River Plate River Plate Russia
1

Import region China China China China China Djibouti1 China Algeria China China Egypt Turkey Algeria Algeria Tunisia Tunisia Egypt Med

Grain types Heavy Grain Heavy Grain Heavy Grain Heavy Grain Heavy Grain Sorghum Grain Corn Heavy Grain Heavy Grain Corn Wheat Corn Corn Heavy Grain Soybean Meal Wheat

Loading date Sep 20/30 Sep 13/22 Sep 10/20 Sep 10/20 Sep 1/10 Aug 18/28 Jul 26/Aug 4 Aug 18/25 Aug10/20 Jul 25/30 Aug 18/20 Sep 10/25 Aug 20/30 Jul 5/15 Aug 17/20 Sep 1/10 Aug 17/23

Volume loads (metric tons) 55,000 55,000 55,000 55,000 55,000 17,500 65,000 30,000 60,000 60,000 45,000 55,000 25,000 25,000 30,000 25,000 60,000

Freight rate (US$/metric ton) 48.00 45.50 46.00 48.00 47.00 98.28 19.45 24.50 48.50 49.00 28.50 24.75 32.50 34.00 28.50 36.00 12.00

Rates shown are for metric ton (2,204.62 lbs. = 1 metric ton), F.O.B., except where otherwise indicates; op = option 75 percent of food aid from the United States is required to be shipped on U.S.-flag vessels.

Source: Maritime Research Inc. (www.maritime-research.com)

Grain Transportation Report

20

September 6, 2012

Aug. 12

June 11

Feb. 12

Feb. 11

June 12

In 2011, containers were used to transport 7 percent of total U.S. waterborne grain exports, up 2 percentage points from 2010. Approximately 11 percent of U.S. waterborne grain exports in 2011 went to Asia, up 4 percentage points from 2010. Asia is the top destination for U.S. containerized grain exports96 percent in 2011.
Figure 18

Top 10 Destination Markets for U.S. Containerized Grain Exports, May 2012
Indonesia 17%
Taiwan 15%

Korea 6%
Vietnam 6%

China 34% Other 7%

Thailand 5%
Japan 5% Philippines 2% Hong Kong Malaysia 2% 1%

Source: USDA/Agricultural Marketing Service/Transportation Services Division analysis of Port Import Export Reporting Service (PIERS) data Note: The following Harmonized Tariff Codes are used to calculate containerized grains movements: 100190, 100200, 100300, 100400, 100590, 100700, 110100, 230310, 110220, 110290, 120100, 230210, 230990, 230330, and 120810.

Figure 19 Monthly Shipments of Containerized Grain to Asia

Sep.

Feb.

Jul.

Oct.

Nov.

Aug.

Mar.

May

Jun.

Jan.

Source: USDA/Agricultural Marketing Service/Transportation Services Division analysis of Port Import Export Reporting Service (PIERS) data Note: The following Harmonized Tariff Codes are used to calculate containerized grains movements: 100190, 100200, 100300, 100400, 100590, 100700, 110100, 230310, 110220, 110290, 120100, 230210, 230990, 230330, and 120810.

Grain Transportation Report

21

September 6, 2012

Dec.

60 57 54 51 48 45 42 39 36 33 30 27 24 21 18 15 12 9 6 3 0

May 2012: Up 14.8% from May 2011 and up 49% from the 4-year average

2011 2012 4-year average

Thousand 20-ft equivalent units

Apr.

Contacts and Links

Coordinators Surajudeen (Deen) Olowolayemo Pierre Bahizi Adam Sparger Weekly Highlight Editors Marina Denicoff Surajudeen (Deen) Olowolayemo April Taylor Nicholas Marathon Grain Transportation Indicators Surajudeen (Deen) Olowolayemo Rail Transportation Marvin Prater Johnny Hill Adam Sparger Barge Transportation Nicholas Marathon April Taylor Truck Transportation April Taylor Grain Exports Johnny Hill Marina Denicoff Ocean Transportation Surajudeen (Deen) Olowolayemo (Freight rates and vessels) April Taylor (Container movements) Economics Assistants Daniel ONeil, Jr. Zachary Smith Joyce Zhang surajudeen.olowolayemo@ams.usda.gov pierre.bahizi@ams.usda.gov adam.sparger@ams.usda.gov marina.denicoff@ams.usda.gov surajudeen.olowolayemo@ams.usda.gov april.taylor@ams.usda.gov nick.marathon@ams.usda.gov surajudeen.olowolayemo@ams.usda.gov marvin.prater@ams.usda.gov johnny.hill@ams.usda.gov adam.sparger@ams.usda.gov nick.marathon@ams.usda.gov april.taylor@ams.usda.gov april.taylor@ams.usda.gov johnny.hill@ams.usda.gov marina.denicoff@ams.usda.gov surajudeen.olowolayemo@ams.usda.gov april.taylor@ams.usda.gov (202) 720 - 0119 (202) 690 - 0992 (202) 205 - 8701 (202) 690 - 3244 (202) 720 - 0119 (202) 295 - 7374 (202) 690 - 4430 (202) 720 - 0119 (202) 720 - 0299 (202) 690 - 3295 (202) 205 - 8701 (202) 690 - 4430 (202) 295 - 7374 (202) 295 - 7374 (202) 690 - 3295 (202) 690 - 3244 (202) 720 - 0119 (202) 295 - 7374

daniel.oneil@ams.usda.gov zachary.smith@ams.usda.gov joyce.zhang@ams.usda.gov

(202) 720 - 0194 (202) 720 -0194 (202) 720 - 0194

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Grain Transportation Report

22

September 6, 2012