Wheat Industry Rail Shippers Welcome STB Rulings On Rate Disputes

Dec 22, 2022

U.S. wheat farmers and the grain trade rely heavily on rail to transport wheat to export terminals by rail, but rates for hauling wheat are often higher than for other crops. The U.S. Wheat Associates (USW) Transportation Working Group is pleased that the STB recognizes rail shippers need new and innovative ways to engage railroads on rate concerns.

New Ways to Challenge Rates

“These rulings are a welcome sign that rail customers like wheat farmers are being heard. The voluntary arbitration program and the FORR process are intended to help give smaller shippers greater ability to challenge rail rates,” said Charlie Vogel, TWG chairman and executive director of the Minnesota Wheat Research & Promotion Council. “Under these programs, the railroads can agree to binding arbitration or allow the STB to review a dispute and determine a final reasonable rate.”

STB Chairman Martin Oberman noted that the Board has been looking for ways to make smaller rail disputes “accessible, reasonable, and less time-consuming.”

Click here to see more...

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!