SAO PAULO, March 7 (Reuters) - Brazil's third largest soy producing state of Rio Grande do Sul will harvest a crop of 7.1 million tonnes this season, down from the 8 million forecast previously, the state agriculture agency projected on Wednesday.
The southernmost state has been one of the worst hit by drought that has withered crops in the region, including Paraguay and Argentina.
This has sparked concerns of rising global food prices because the region produces more than half the world's trade in soybeans, an important source of protein for humans and livestock.
Brazil's federal crop supply agency Conab is due to release its sixth forecast of the national grains crop on Thursday morning. Many expected it would revise downward its numbers for national output of soybeans.
Brazil harvested a record 75.3 million tonnes last year.
But below-normal rainfall from November into January has slashed output to just over 69.2 million tonnes in Conab's February forecast.
The southernmost state has been one of the worst hit by drought that has withered crops in the region, including Paraguay and Argentina.
This has sparked concerns of rising global food prices because the region produces more than half the world's trade in soybeans, an important source of protein for humans and livestock.
Brazil's federal crop supply agency Conab is due to release its sixth forecast of the national grains crop on Thursday morning. Many expected it would revise downward its numbers for national output of soybeans.
Brazil harvested a record 75.3 million tonnes last year.
But below-normal rainfall from November into January has slashed output to just over 69.2 million tonnes in Conab's February forecast.
