Private analytical firm Informa Economics on Friday lowered its outlook for the Brazilian soybean harvests, according to traders.

Informa cut its forecast for soybean output in Brazil, the world's second-largest producer of the oilseed, because of dry conditions stressing soybeans as they were blooming and filling pods in the southernmost state of Rio Grande do Sul in February.

The closely watched agricultural forecaster lowered its estimate for Brazil's soybean crop to 68 million tons from its previous estimate of 70 million tons, traders said. The U.S. Department of Agriculture last month projected the crop at 72 million tons.

Informa also cut its forecast for Paraguay soybean output by 2.4 million tons from last month to 4 million, traders said.

Tempering the reductions in Brazil and Paraguay soybean crop estimates was Informa's 1-million-ton increase in Argentina's soybean crop estimate to 47.5 million tons, traders said. USDA's February estimate was 48 million tons.

The increase is due to above-normal February rains which were timely for the late-planted single crop and double crop soybeans, traders said.

Argentina's crop production is important to global agricultural markets as it is also the world's third-largest soybean exporter, and the leading exporter of soy products.

Informa forecast Brazil corn production at 61.5 million tons, unchanged from its previous estimate.

Informa pegged corn production in Argentina, the world's second-largest corn exporter, at 22.5 million tons, unchanged from its previous estimate and above USDA's February estimate of 22 million tons, traders said.

Informa also pegged world cotton production at 123.5 million bales, down 60,000 from last month, traders said. Reduced production forecasts in Brazil and Australia due to excessive February rains were tempered by a 300,000 bale increase in Pakistan, Informa noted in the report according to traders.

The USDA is scheduled to release updated figures on Friday March 9, at 8:30 a.m. EST.

-By Andrew Johnson Jr., Dow Jones Newswires; 312-347-4604; andrew.johnsonjr@dowjones.com

(END) Dow Jones Newswires

March 02, 2012 12:13 ET (17:13 GMT)