BNSF Railway is lowering the price of shipping Montana grain due to cheaper diesel fuel and lower demand.

BNSF announced on Wednesday a $100 per-car reduction for wheat shipments. Grain typically ships more than 100 cars at a time.

Montana Grain Growers Association Executive Vice President Lola Raska says the price reduction is good news for farmers who continued to hold on to wheat with hopes demand for U.S. grain would improve.

There has been a surplus of wheat on the global market, which is driving prices down. Roughly 80 percent of Montana wheat is exported, according to the Montana Wheat and Barley Committee.

Shipping rates for pulse crops such as peas and lentils were also reduced $75 per car.