SAO PAULO, June 5 (Reuters) - Brazil's government trimmed its 2011/12 soybean crop estimate on Tuesday after drought ravaged output in the world's second biggest producer this season, but raised its forecast of corn output to a record.
U.S. soybean futures rose after Brazil's food supply agency Conab cut its production forecast and U.S. crop ratings disappointed. [ID:nL3E8H553C]
Brazil's soy crop that finished harvest in May is now estimated at 66.37 million tonnes, after drought erased about 10 million tonnes from crop's potential, Conab data showed. The latest output number is down slightly from last month's estimate of 66.68 million tonnes.
Carry-over stocks of soybeans are set to drop to 1 million tonnes, Conab estimates, their lowest since 2008/09 and down about 65 percent from last year. No major revisions to the soy crop are expected in the coming months. Brazil harvested a record 75.3 million tonnes the year before.
Despite the drought, corn production jumped in Conab's ninth forecast of the grain crop to a record 67.79 million tonnes from the 65.90 million projected a month ago. It is the first time in over a decade that Brazil will harvest less soy than corn, which is mostly consumed by the local pork and poultry industry.
Producers have shifted more of their corn planting to the winter crop recently. This winter, or second crop, that is planted from January to March leapt 53 percent from last year to 32.9 million tonnes. The winter crop will be harvested in the coming weeks.
