83.2 F
Fort Worth
Sunday, September 27, 2020
- Advertisements -
Energy Railroads jump as commodities rally boosts outlook for carloads

Railroads jump as commodities rally boosts outlook for carloads

Other News

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for September delivery rose 31 cents to settle at $41.60 a barrel Monday. Brent crude...

Trump to discuss energy, tour oil rig, raise money in Texas

By DARLENE SUPERVILLE Associated PressWASHINGTON (AP) — President Donald Trump will shift his focus to American energy dominance during a stop in...

Basic Energy Services makes organizational changes

Fort Worth-based Basic Energy Services, Inc. (OTCQX: BASX) in late May announced the implementation of changes to the organizational structure of the...

Texas oil producers were cutting output before Railroad Commission chose not to, Commissioner Christi Craddick says

By Cassandra PollockMay 12, 2020 Texas Railroad Commissioner Christi Craddick on Tuesday doubled down on the agency’s recent decision...

CSX Corp., Norfolk Southern Corp., and Union Pacific Corp. climbed as lower coal stockpiles and a commodities rally led by grain and oil hinted that a cargo slump may have hit bottom.

Farmers, who have stored grain to wait for higher prices, may begin to ship more as prices for corn, soybeans and other crops begin to climb, said Frank Lonegro, chief financial officer of CSX said during a presentation at a Deutsche Bank AG conference in Wednesday. Since April, prices have risen 22 percent for corn and 29 percent for soybeans.

“The farmers collectively needed to see an uptick in the prices in order to unlock some of the grain that they had in storage,” Lonegro said. “So good crop prices are positive in terms of volumes.”

Railroads have been cutting costs and storing locomotives as lower shipments of coal, oil and grain cause a decline in freight. Carloads for the five major U.S. carriers fell 6.5 percent in the first quarter and so far have dropped 10.4 percent this quarter, according to the Association of American Railroads, a trade group that reports weekly shipments.

Coal stockpiles have declined in the regions served by CSX, the largest railroad in the eastern U.S., Lonegro said. In the North, there were 87 days of coal stocks and 113 days in the South, he said. That’s less than 105 days in the North and about 180 days in the South that Lonegro gave on May 24.

“The fact that coal stockpiles have been coming down is a good data point for people waiting for any inclination of a bottom for coal,” said Lee Klaskow, an analyst with Bloomberg Intelligence, in a telephone interview.

CSX gained 2 percent to $27.01 at 3:11 p.m. in New York and its main competitor in the east, Norfolk Southern, climbed 2.7 percent to $86.01. Union Pacific, the largest publicly traded railroad, rose 1.4 percent to $88.83. All three earlier posted their biggest intraday gains since April 22, the day after Norfolk Southern reported first-quarter earnings that beat analyst estimates.

- Advertisements -
- Advertisements -

Latest News

Permian investments grow as market shows signs of recovery

CARLSBAD, N.M. (AP) — An American energy investment company has pledged $8.5 million to develop oil and gas assets in the Permian...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for November delivery rose 33 cents to $39.93 a barrel Wednesday. Brent crude oil for...

Airline denies mom and son, 2, after he refused to wear mask

PORTSMOUTH, N.H. (AP) — A New Hampshire woman was not allowed to stay on an American Airlines flight with her 2-year-old son...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for October delivery rose 81 cents to $40.97 a barrel Thursday. Brent crude oil for...

U.S. Energy Development Corp. announces $8.5 million deal in the Permian Basin

U.S. Energy Development Corporation, an exploration and production firm that provides direct investments in energy, has announced an interest in a horizontal...