(In Sept. 10 story, U.S. Grains Council corrects value of corn product purchase agreements to $1.8 billion, instead of $4 billion, and clarifies that the $4 billion also included soybeans and wheat, paragraphs 2 and 4)
Sept 10 (Reuters) - Taiwan signed a letter of intent on Tuesday to buy 5 million tonnes of U.S. corn over the next two years and 500,000 tonnes of distillers dried grains (DDGS), a byproduct of corn-ethanol production used as a feed grain, the U.S. Grains Council said.
The value of the corn products was estimated at $1.8 billion, the USGC, which promotes U.S. grain in foreign markets, said.
The agreement was signed by the Taiwan Feed Industry Association on behalf of the Taiwanese Agricultural Goodwill Mission.
The total value of all agreements signed on Tuesday, which also included letters of intent to buy U.S. soybeans and wheat, was estimated at $4 billion, said USGC spokeswoman Marri Carrow.
Letters of intent are not binding sales contracts but are traditionally honored by longtime trading partners such as Taiwan and the United States, U.S. traders said. The value of the sales is estimated, since the final terms of the deals will be negotiated by private grain companies, they said.
A trade delegation from Nebraska signed similar agreements last week with importers in Taiwan to buy $400 million of the state’s corn, soybeans and wheat.
Taiwan was the sixth-largest importer of U.S. corn in the 2011/12 (Sept/Aug) season, the third-largest U.S. barley importer and the seventh-largest U.S. sorghum importer. (Reporting by Karl Plume in Chicago; editing by Ken Wills)