SAO PAULO (Dow Jones)--Brazilian soybean production will totalapproximately 66.6 million metric tons in the 2004-05 season(October-September), some 33.5% higher than the 49.9 million tons producedin the last drought- and disease-hit season, according to the first newcrop survey released by the local Safras e Mercado agriculturalconsultancy Friday.The estimate is in line with the 66 million tons forecast by the U.S.Department of Agriculture earlier in the week.The foundation of production growth this season will be a 23% recoveryin average yields this year, said the report. In 2004-05, productivity isseen reaching 2,882 kilograms per hectare compared with 2,346 kg/hectarelast year.According to a Safras report, the estimate assumes favorable weatherconditions, but takes into account the inevitability of crop losses toAsian rust and the fact that yields are normally low in the newlycultivated frontier lands in the northeast and center-west.Safras is forecasting that planted area will total 23.09 millionhectares, some 8.2% higher than the 21.34 million hectares cultivated thisyear.As such, the soy belt will be of record size for the sixth consecutiveyear, although there is much less euphoria surrounding the prospects forsoybeans this year following the recent slide in prices.But farmers will plant soybeans regardless, especially in the frontierregions of the center-west, for a number of reasons. Firstly, averageprices over the last year have been attractive; secondly, farmers stillmade profits last year despite crop losses and believe they can do soagain; thirdly, there is more credit available for soybeans than for othercrops; and finally soybeans are the easiest crop to sell."At this moment, prices aren't favorable for any (of the principal)products. In these circumstances, the liquidity of soy makes thedifference," said Flavio Franca Jr., Safras' soy analyst.However, farmers are aware that they will have to invest heavily tocontrol Asian rust next year and still may incur losses.The Safras estimate is the halfway point of a range in which itpredicts output will fall of 64.5 million to 68.6 million tons.The center-west state of Mato Grosso is expected to lead Brazil inproduction again next season with output of 17.7 million tons, up 18.7%from 14.9 million tons in 2003-04.Next will come the southern state of Parana with production of 12.4million tons, up 22.2% from the 10.1 million tons produced last year.