-- Soybean prices slide more than 1%

-- Reported China defaults weigh on soybeans

-- Corn edges lower amid mixed weather outlook

CHICAGO--U.S. soybean futures fell Friday, continuing to retreat from an eight-month high this week amid speculation that demand from China may cool. Corn fell and wheat was unchanged.

Soybeans declined for a second straight session, pressured by a Reuters report that Chinese importers have defaulted on purchases of at least 500,000 metric tons of U.S. and Brazilian soybeans. Analysts said Chinese buyers have struggled to secure credit due to losses in processing soybeans, another sign of increasing financial stress as growth slows in the world's second-largest economy.

Soybeans for May delivery dropped 17 3/4 cents, or 1.2%, to $14.64 1/2 a bushel at the Chicago Board of Trade.

"Everybody is watching the possibility of cancellations" of orders of U.S. soybeans by Chinese buyers, said Shawn McCambridge, a senior grain analyst for broker Jefferies Bache Commodities LLC in Chicago. "We're continuing to hear reports from China of some vessels not unloading because of credit issues."

China is the world's largest importer of soybeans, which are widely used in animal feed, and strong demand from the Asian nation fueled a sharp recent rise in U.S. soybean futures. Prices hit the highest since July 2013 on Wednesday, after the U.S. Department of Agriculture forecast that U.S. stockpiles would be the smallest in 10 years this summer due to strong China-led export demand.

On Friday, the USDA said private exporters had reported the sale of 330,000 metric tons of soybeans for delivery to unknown destinations during the 2014-15 season that will start Sept. 1. Analysts predict the sale--widely assumed to be destined for China--may help support futures Friday.

Corn futures fell Friday on signs that farmers will make progress toward planting this year's crops. Warm weather and few rain showers are aiding corn seeding in the southern Corn Belt, according to a Friday report by private forecaster Commodity Weather Group LLC. Still, some forecasts showed wetter weather this weekend in the eastern Midwest, which could delay field work.

"We're seeing lots of active fieldwork across the southern half of the corn belt," Jefferies's Mr. McCambridge said. "Other areas are seeing some issues. We'll have to wait to see what next week's weather brings."

Corn for May delivery fell 1 cent, or 0.2%, to $5.00 1/4 a bushel.

Wheat futures were flat after opening marginally lower as forecasters predicted less rainfall than previously expected across wheat country for this coming weekend. Drought in the southern Great Plains has fueled concerns about the health of the winter-wheat crop.