4/1/06 (Financial Express)  - Brazil, the world's second-biggest soybean producer and exporter, may harvest 20% more of the oilseed next year as more favourable weather promises to boost crop yields, a US agricultural attache said. The South American country may gather a record of 61 million metric tonnes of soybeans in the year starting Feb 1, compared with 51 million tonnes from last year's drought and disease-affected crop, the US Foreign Agricultural Service in Brasilia said in a report released on Dec 27.

"After an unfortunate overall crop year in 2004-05 caused by a drought in southern Brazil, overall yields are expected to be significantly higher due to the recuperation of yields in the south," Agricultural Attache Elizabeth Mello said in the report.

A larger Brazilian soybean crop will bolster an exportable surplus of the commodity, adding competition for US suppliers. Soybean prices rose 12% last year on the Chicago Board of Trade. Brazil's soybean exports may climb 23% to 24 million tonnes in 2006-07, the attache report said. Soybeans for delivery in March rose 4.75 cents, or 0.8%, to $6.14 a bushel when last traded in Chicago on Dec 30. Brazilian farmers have planted soybean crops in all states, except for Santa Catarina and Rio Grande do Sul, where lingering dry weather has caused delays, the report said. Farmers will probably harvest an average of 2.8 tonnes of soybeans from each hectare (2.47 acres) of crops, it said.