SINGAPORE - Chicago soybeans gained more than 2 percent on Monday, rising for a second session to a near one-week high, after Washington and Beijing agreed to drop tariff threats, easing fears about demand for U.S. shipments in top importer China.

Wheat and corn rose more than 1 percent to hit a two-week high.

The most-active soybean contract on the Chicago Board Of Trade was up 2.1 percent at $10.19-1/2 a bushel, as of 0301 GMT.

Earlier in the session, the market climbed to its highest since May 15 at $10.23 a bushel.

Analysts said the market was drawing comfort from an easing of tensions between the United States and China.

"The United States and China have reached some sort of an agreement because as much they perhaps do not like one another, they are each too big to ignore," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The U.S. trade war with China is "on hold" after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Sunday.

In April, China proposed a 25 percent tariff on U.S. soybeans as part of its response to Washington's plans to impose tariffs on a range of Chinese products.

But the upside in U.S. soybean prices is limited.

"Soybeans and even wheat and corn have gone up, easing of trade war tensions between the U.S. and China are supporting agricultural markets," said Phin Ziebell, agribusiness economist at National Australia Bank.

"However, Brazilian soybeans are getting competitive and they have a record crop to sell, so the upside for U.S. beans is limited."

Orders for nearly 1 million tonnes of U.S. soybean exports were cancelled last week, according to U.S. government data released on Friday, as cheap supplies from Brazil made U.S. cargoes less attractive to buyers.

Corn climbed 1.1 percent to $4.07 a bushel, having gained 1.8 percent in the previous session, and wheat rallied 1.1 percent to $5.23-3/4 a bushel. Earlier in the session, both markets climbed to their highest since May 4.

Wheat also drew support as dry conditions are set to linger across the U.S. Plains, threatening further damage to an already-parched crop.

Large speculators cut their net long position in CBOT corn futures in the week to May 15, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans. 

Grains prices at 0301 GMT