GRAINS-Soybeans jump as Bessent points to possible Trump-Xi talk hopes

BEIJING, Oct 27 (Reuters) - Chicago soybean futures touched a two-month high on Monday, as renewed optimism over Chinese buying lifted sentiment after Treasury Secretary Scott Bessent said the two nations' leaders could discuss "substantial" soybean deals in a possible meeting.

Corn and wheat followed soybeans higher.

FUNDAMENTALS

As of 0017 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 climbed 1.63% at $10.58-3/4 per bushel, hitting their highest levels since August 25.

Corn Cv1 added 1.36% to $4.29 a bushel, while wheat Wv1 gained 1.71% to $5.21-1/4 a bushel.

Markets are closely watching a highly anticipated meeting between Trump and Xi in South Korea this week. Washington has continued to signal optimism over a potential soybean deal with Beijing. China, so far, has not yet officially confirmed the meeting.

U.S. Treasury Secretary Scott Bessent said on Sunday that he anticipates that China will revive substantial purchases of U.S. soybeans for several years and will delay its expanded licensing regime for rare earths by a year and re-examine it after two days of trade talks in Malaysia.

Bessent said on ABC's "This Week" program that when Trump and Xi announce a trade deal next Thursday U.S. soybean farmers "will feel very good about what's going on both for this season and the coming seasons for several years."

Analysts have said a major soybean deal could help U.S. farmers avert deeper losses, though China's import window is narrowing as buyers continue to secure cargoes from South America.

Meanwhile, the U.S. Trade Representative's office said it had launched a new tariff investigation into China's "apparent failure" to comply with the "Phase One" trade deal signed with Trump in 2020 to end his first-term U.S.-China trade war.

Corn and wheat markets remained pressured by plentiful supplies. Traders are awaiting more clarity on the size of the U.S. corn harvest, which is widely expected to reach record levels.

DATA/EVENTS

0900 Germany Ifo Business Climate New Oct

0900 Germany Ifo Curr Conditions New Oct

0900 Germany Ifo Expectations New Oct

1100 France Unemp Class-A SA Sep

1230 US Durable Goods Sep