You are here

Taiwan signs deal to buy $1.56 billion in Iowa, Minnesota soybeans

By P.J. Huffstutter

CHICAGO, Sept 27 (Reuters) - Taiwanese trade officials and business leaders signed a letter of intent on Thursday to purchase as much as 3.9 million metric tons of soybeans from farmers in Minnesota and Iowa over the next two years, Minnesota Governor Mark Dayton said in a statement.

The Taiwanese Agricultural Trade Goodwill delegation said it plans to purchase between 3.2 million and 3.9 million tonnes valued at up to $1.56 billion of Midwestern soybeans in 2018 and 2019, state officials said.

If the sales go through, it could be a big boost for U.S. soybean exports to Taiwan, the sixth-largest U.S. soybean export market last year. In 2017, Taiwan's total soybean imports from the United States were 1.4 million metric tonnes.

The deal comes as U.S. soybean sales to top-importer China have plummeted, along with grain prices, amid a bruising trade war between the world's top two economies. Farm groups and rural economy advocates have been pushing for the trade fight to end, as well as hunting for new markets in which to sell their agricultural goods.

The agreement came after a trade mission by Minnesota agriculture officials to Taiwan last month, and meetings with Taiwan Vegetable Oil Manufacturers Association Chairman Yau-Kuen Hung.

Taiwan is Minnesota's sixth-largest export market, and a key trading partner for the state's agricultural products, state officials said.

In 2013, a Taiwanese trade delegation visited Minnesota and signed a similar pledge to buy up to $3.5 billion in U.S. corn and soybeans for shipment in 2014 and 2015.

(Reporting by P.J. Huffstutter in Chicago Editing by Karl Plume and Matthew Lewis)

© Copyright Thomson Reuters 2018. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about

Tip of the Day

Tech Tip: Check the Updates/Firmware on Used Precision Ag Tech

When you buy a used piece of precision ag technology, one of the first things you will need to do is make sure the firmware or software is... read more

Talk in Marketing

Most Recent Poll

How much of your 2019 corn crop is planted?