Consultancy INTL FCStone slashed its output forecast by about 4 million tonnes to 116.25 million tonnes, according to a report sent to clients on Thursday.
INTL FCStone is among the first consultancies to lower its projection for Brazilian soybean output this season after below-average rains started to put stress on soybean fields in states like Paraná and Mato Grosso do Sul.
"If [the new projection] is confirmed, Brazilian soybean output will not break the previous record, even in the face of the expansion of the planted area," INTL FCStone said.
According to Brazilian government data, local farmers collected an unprecedented 119.3 million tonnes in the 2017/2018 cycle. The consultancy expects planted area this season to be above 36 million hectares (88.9 million acres), it said.
"Dry and hot weather, especially in the center-south of Brazil in the first weeks of December, compromised yields in some fields," INTL FCStone said.
In a December report, the consultancy expected farmers to collect 120.21 million tonnes of the oilseeds this year.