The Surface Transportation Board sent a letter to all the Class 1 railroads on July 13 asking them if they will be ready for the "fall peak" period. The railroads assured the STB performance has improved since last year.
As the 2014-15 crop marketing year draws to a close, let's look at how basis fared in the past 12 months. In general, at the end of August 2015, corn, soybean and wheat basis is about 30 to 40 cents weaker than the 5-year averages for each crop.
The Surface Transportation Board needs to quickly move ahead with a comprehensive set of proposals for railroad grain shipping rates and rail revenue adequacy in order to create more certainty for both shippers and railroads, the former acting chairman of the STB told attendees at this year's National Grain and Feed Association Ag Transportation Summit.
During a hearing held last week, railroads and shipper groups voiced opposite views on whether railroads should be able to continue to differentially price rail service to captive shippers once they reach revenue-adequate status.