Brazilian agriculture consultancy Safras & Mercado on Monday trimmed its forecast for Brazil's 2011-12 soybean crop, saying a drought this year represented farmers' "worst fears" realized.

Safras now sees Brazil harvesting 66.82 million metric tons of soybeans this year, down 10% from 2010-11 and a 2.1% reduction against the firm's March crop forecast.

• Read more from Agriculture.com: U.S. soybeans to Brazil?
  

"The [grains] crop was heavily limited by bad weather, confirming the worst fears highlighted in our previous report," Safras analyst Flavio Franca Junior said in a press release. "That comes on top of the negative impact on prices and demand from the financial crisis observed in the second half of 2011."

-By Paul Kiernan, Dow Jones Newswires; (+55)11-3544-7074, paul.kiernan@dowjones.com
(END) Dow Jones Newswires
May 07, 2012 13:27 ET (17:27 GMT)
DJ Brazils Safras Cuts Soy Crop View 2.1% To 66.82 Mln Tons->copyright