10/09/04 WASHINGTON (Dow Jones)--The U.S. Department of Agriculture onFriday lowered its forecasts for 2004-05 soybean production and yield,again going against analysts' expectations for stronger predictions. USDAattributed the decrease mainly to lower-than-expected yield prospects inthe upper Midwest.USDA, in its monthly crop report, predicted U.S. soybean productionwill reach just 2.84 billion bushels. That's a drop from the August andJuly forecasts of 2.88 billion and 2.94 billion, respectively. Despite theforecast declines, USDA said in the report that 2004-05 production isstill expected to be "the second highest production on record."The projected average soybean yield was set at 38.5 bushels per acre,a 0.6-bushel drop from the August forecast, USDA said in the Septembercrop report."Below-normal temperatures and adequate moisture across most of theCorn Belt, the Great Plains and the Delta in August favored the soybeancrop during critical stages of development," USDA said in the crop report."However, yield prospects declined in the northern tier of states due tocool weather. A brief period of freezing temperatures slowed thedevelopment of a crop already behind in maturity in North Dakota andMinnesota."