MARKETING HARD RED SPRING WHEAT IN 100-CAR TRAINS

The 100+ car rates are a recent innovation in rail grain pricing. Although the rates have been available via contract, a public offering last fall initiated much of the current interest in these larger units. The objective of this study is to provide an informational base that hard red spring wheat market participants can use in assessing the value of a 100-car marketing option for their business. This study was conducted in cooperation with industry participants, including the North Dakota Wheat Commission, Canadian Pacific Railway, North Dakota Grain Dealers Association, Red River Valley and Western Railroad Company, and the South Dakota Wheat Commission. The implications of 100+ car rates may vary by region and commodity due to production and logistical characteristics. Information on production density, land use, transportation, and grain drawing economics for corn, wheat, and soybeans produced in North Dakota, South Dakota, Nebraska, Kansas, and Iowa are included in the study. Estimates of rail efficiency gains and returns on investment for elevator upgrades also are included. The 100+ car facilities have important implications for the infrastructure and market processes that support hard red spring wheat procurement. A 100+ car marketing option may likely benefit market participants as it increases flexibility by adding another marketing alternative. The advent of larger trains will, however, likely contribute to further rationalization of the state's grain procurement system. Further rationalization may include fewer elevators, additional rail line abandonment and longer producer deliveries.

• Record URL:
  https://ntlrepository.blob.core.windows.net/lib/21000/21000/21087/PB98175102.pdf
• Record URL:
  https://www.ugpti.org/resources/reports/details.php?id=443
• 
• Corporate Authors:

  Upper Great Plains Transportation Institute

  North Dakota State University
  1320 Albrecht Boulevard
  Fargo, ND  United States  581052
• Authors:
  • Vachal, K
  • Tolliver, D
  • Bitzan, John
  • Baldwin, B
• Publication Date: 1998-8

Language

• English

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; References; Tables;
• Pagination: 97 p.

Subject/Index Terms

• TRT Terms: Grain; Innovation; Marketing; Pricing; Rates; Wheat
• Old TRIS Terms: 100-Car trains
• Subject Areas: Finance; Freight Transportation; Railroads;

Filing Info

• Accession Number: 00753936
• Record Type: Publication
• Report/Paper Numbers: MPC Report No. 98-93
• Files: NTL, TRIS
• Created Date: Sep 23 1998 12:00AM