* Tuesday press release…

Governor JB Pritzker announced today that Taiwan has made a $2.2 billion commitment to purchase Illinois corn and soybeans over the next two years.

“Illinois corn and soybean producers have cultivated a world-class industry with customers in all parts of the world, and this $2.2 billion commitment is a testament to their dedication and hard work,” said Governor JB Pritzker. “When Illinois’ agricultural economy thrives, so do working families all across the state. I’m committed to supporting our state’s leading industry and opening up new opportunities for our farmers to sell their goods and make a good living.”

Illinois and Taiwanese associations signed two $1.1 billion agreements to purchase Illinois crops between 2020 and 2021.

The Illinois Corn Marketing Board and the Taiwan Feed Industry Association signed a letter of intent marking Taiwan’s intentions to buy 5 million metric tons (equivalent to 197 million bushels) of corn and 0.5 million MT of corn co-products (distiller’s dried grains with solubles).

The Taiwan Vegetable Oil Manufacturers Association and the Illinois Soybean Association signed a letter of intent marking Taiwan’s intentions to buy between 2.6 million and 2.9 million MT (equivalent to between 96 million and 97 million bushels) of soybeans.

* One Illinois…

China was not a major importer of Illinois corn before Trump launched his trade war last year, but the deal does much to replace the $1.3 billion in Illinois soybeans sold to China in 2017 — about a quarter of the state crop. Last year, retaliatory tariffs China imposed, along with the African swine fever outbreak that wiped out an estimated third of the country’s herd — eliminating much of the need for feed crops — cut those imports 91 percent to $116 million. Last year, by comparison, Taiwan bought just over $400 million in Illinois soybeans.

* Crain’s…

“Lifeline? Really, that’s about what it is,” said Bobby Dowson, international marketing representative for the Illinois Department of Agriculture. “It’s hard to replace the 400-pound gorilla on the block.” […]

The U.S. Soybean Export Council has pushed for farmers to look for alternatives to the Chinese market. Both council CEO Jim Sutter and Chief Financial Officer Ray Young at Archer Daniels Midland doubt U.S. soy sales to China will recover to previous levels. […]

In addition to Taiwan, Mexico and the Dominican Republic are scooping up Illinois soybeans, Dowson said.

* Reuters…

Some traders expressed skepticism at the deals, noting buyers generally do not make commitments with individual U.S. states and there was no legal language in the letter of intent that ensures the purchases will be made.

“There’s no guarantee, but they always have fulfilled what they’ve said they would do,” said Roger Sy, chairman of the Illinois Corn Marketing Board, who attended the signing in Chicago on Tuesday morning.

“So far, they’ve been a very reliable customer.”