BEIJING  - Chicago soybean futures touched a more than two-month high on Monday, as renewed optimism over Chinese buying lifted sentiment after U.S. Treasury Secretary Scott Bessent said the two nations' leaders could discuss "substantial" soybean deals.

As of 0359 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) climbed 1.61% at $10.58-1/2 per bushel, its highest level since August 25.

Markets are closely watching a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping 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.

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.

When Trump and Xi announce a trade deal this 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," Bessent said on ABC's "This Week" program.

"There are great hopes that all is forgiven and we are back to normal, yet most traders have forgotten that the same promises were made and loudly announced just four months ago," said Ole Houe, director of advisory services at IKON Commodities, Sydney.

"There is still a long way to go before we see the first boats arriving in China and a lot can happen."

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.

On China's Dalian Commodity Exchange, the most-active soymeal futures fell 0.27% to 2,932 yuan ($411.62) per metric ton, as of 0348 GMT.

"The downside appears limited due to several factors. Higher import costs are providing price support, while the drawdown in domestic soybean meal inventories indicates that the recovery of U.S. soybean imports will have only a limited impact on near-term supply," said Wan Chengzhi, analyst at Capital Jingdu Futures.

"Moreover, market participants hold differing views regarding the outcomes of the China-U.S. trade negotiations."

Corn and wheat also tracked soybeans higher. Corn added 1.48% to $4.29-1/2 a bushel, while wheat gained 2.24% to $5.24 a bushel.

"In our view, the enthusiasm is unlikely to be able to hold more than a day or two for wheat and corn, as supplies remain abundant," said Houe.

($1 = 7.1230 Chinese yuan renminbi)