Brazilian agribusiness consultancy AgRural on Monday revised down the country's 2019/2020 soyabean crop, according to a statement, as a drought hit the south of the world's largest exporter of the oilseed.
Brazilian farmers are now expected to collect 500,000 fewer tonnes this season for a total of 123.8 million tonnes. That is lower than AgRural's previous estimate of 124.3 million tonnes but would still be a record.
Harvesting of the soya fields has advanced to 83% of cultivated area, slightly lower than the 84% last year but above a five-year average for this time in the season, according to the consultancy.
With soya harvesting almost done, all eyes are now on the country's harvest for second corn, which is planted after soyabeans are harvested in key areas like Mato Grosso.
Brazil's second corn represents about 75% of the country's total output of the cereal, and allows Brazil to compete with the United States in export markets in the second half of the year. With Brazil's second corn sowed, analysts are "on alert" watching whether rains will be sufficient to guarantee a good crop, AgRural said, citing potential issues in Mato Grosso do Sul state and Paraná state.
In March, the government predicted Brazil's second corn output at 73.4 million tonnes, slightly above last year's level of 73.2 million tonnes.