Soybean futures fell to around $11.42 per bushel, extending losses for a second session as prices retreated from last week’s multi-month highs.

The pullback was driven by thin demand from China, the world’s largest importer, which was out of the market during a week-long holiday, dampening near-term buying interest. Prices had climbed to a 2-month high in early February after U.S. President Trump said China was considering boosting purchases of U.S. soybeans.

A report by the South China Morning Post also suggested that Trump and Chinese President Xi Jinping could extend their trade truce for up to a year, raising hopes for stronger agricultural trade.

However, the lack of confirmed deals limited follow-through buying.

Additional pressure came from ample supply in Brazil, the top producer, as harvest progress improved export availability.
Source: Trading Economics