# Secondary Rail Rates, Tight Elevation Capacity Continue to Support Wheat Export Prices - U.S. Wheat Associates

> U.S. Wheat Associates reports that Gulf and Pacific Northwest hard red spring and hard red winter basis values rose sharply over the past month. Secondary rail rates for October shuttle trains climbed 36% to $1,172 per car, nearly three times the previous three-year average. Limited export elevator capacity added to the upward pressure.

- Date: 2020-09-02 · published 2020-09-02T12:00:00.000Z
- Category: logistics · region US · magnitude medium
- Page: https://feedsoft.ai/events/51171-secondary-rail-rates-tight-elevation-capacity-continue-to-support-wheat-export
- Commodities: [Wheat (HRW)](https://feedsoft.ai/c/KWHEAT.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Barge Freight (St. Louis)](https://feedsoft.ai/c/BARGE.md)

## Why it matters

Higher rail and elevator costs widen the gap between farm-gate and export wheat prices, raising delivered costs for overseas buyers. The strength is tied to strong Chinese demand for U.S. grain, which keeps U.S. wheat export prices firm.

## Read by commodity

- BARGE: bullish ▲
- WHEAT: bullish ▲
- KWHEAT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| KWHEAT | 2020-06-24 | [Limited Elevation Capacity Supports Gulf Wheat Export Basis - U.S. Wheat Associates](https://feedsoft.ai/events/52645-limited-elevation-capacity-supports-gulf-wheat-export-basis-u-s-wheat-associates.md) | +0.1% | +3.1% |
| KWHEAT | 2020-12-10 | [U.S. Wheat Export Basis to Remain High Until March 2021 - U.S. Wheat Associates](https://feedsoft.ai/events/49692-u-s-wheat-export-basis-to-remain-high-until-march-2021-u-s-wheat-associates.md) | +2.0% | +8.1% |
| KWHEAT | 2020-10-15 | [U.S. Wheat Export Prices Firm on Higher Futures Prices and Export Basis Values - U.S. Wheat Associates](https://feedsoft.ai/events/50680-u-s-wheat-export-prices-firm-on-higher-futures-prices-and-export-basis-values-u.md) | +6.4% | +3.5% |
| KWHEAT | 2022-03-09 | [Explainer: India's wheat exports surge as world prices soar \| Reuters](https://feedsoft.ai/events/42246-explainer-india-s-wheat-exports-surge-as-world-prices-soar-reuters.md) | -2.4% | -8.7% |
| KWHEAT | 2023-04-26 | [Wheat farmers ask Canada to step in as strike threatens exports \| Air Freight News](https://feedsoft.ai/events/36423-wheat-farmers-ask-canada-to-step-in-as-strike-threatens-exports-air-freight-news.md) | -5.7% | +2.8% |
| WHEAT | 2020-06-24 | [Limited Elevation Capacity Supports Gulf Wheat Export Basis - U.S. Wheat Associates](https://feedsoft.ai/events/52645-limited-elevation-capacity-supports-gulf-wheat-export-basis-u-s-wheat-associates.md) | +0.3% | -5.4% |
| WHEAT | 2020-12-10 | [U.S. Wheat Export Basis to Remain High Until March 2021 - U.S. Wheat Associates](https://feedsoft.ai/events/49692-u-s-wheat-export-basis-to-remain-high-until-march-2021-u-s-wheat-associates.md) | -1.5% | +4.0% |
| WHEAT | 2020-10-15 | [U.S. Wheat Export Prices Firm on Higher Futures Prices and Export Basis Values - U.S. Wheat Associates](https://feedsoft.ai/events/50680-u-s-wheat-export-prices-firm-on-higher-futures-prices-and-export-basis-values-u.md) | +1.9% | -0.2% |

## Sources

- uswheat.org: https://uswheat.org/wheatletter/secondary-rail-rates-tight-elevation-capacity-continue-to-support-wheat-export-prices/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.