3/5/05 - Brazil's 2004-05 soybean crop (October-September) will onlytotal around 53.1 million metric tons because drought has ravaged fieldsacross southern states, local analysts Agroconsult said Friday.

The estimate was lowered from the 58.4 million tons forecast at the end ofFebruary.

"But the sharp deterioration of the crop has prompted another quickreduction," said Douglas Nakzoni, an Agroconsult analyst.

Agroconsult has undercut most private estimates, which sit above 56million tons. However, the continued dry weather in the southern states ofRio Grande do Sul and Parana means the crop potential is declining all thetime, traders say.

Crops were also suffering from a lack of moisture in Mato Grosso do Suland Goias, according to a report based on field surveys over the last twoweeks.

Brazil is the world's No. 2 soybean producer.