SAO PAULO (Dow Jones)--Brazilian soybean production will totalapproximately 63.5 million metric tons in the 2004-05 season(October-September), some 28.8% higher than the 49.3 million tons producedin the last drought- and disease-hit season, according to the localAgRural agricultural consultancy, Thursday.The estimate for the world's No. 2 crop is considerably lower than the66 million tons forecast by the U.S. Department of Agriculture last week.Planted area is expected to grow a modest 7% next season to 22.7million hectares, said a press release. This expansion will principallytake place in the frontier regions of the center-west and the northeastand in areas previously dedicated to ranching. In the south, farmers areexpected to favor planting soybeans instead of corn due to low prices andlimited market liquidity for the grain.Average yields are expected to rebound to 2,800 kilograms per hectareacross the vast soy belt, up 21% from the disastrous 2,315 kilograms perhectare registered last year, it said.Average yields would be even higher were it not for the ever-presentthreat of Asian rust and the low productivity of lands where soybeanhaven't been planted before.Output will be largest in the center-west state of Mato Grosso, whereproduction will rise 21% to 17 million tons.