Nov. 5 (Bloomberg) -- Soybean farmers in Brazil, the world’s second-largest grower, may produce more of the oilseed next year than previously forecast after rainfall in recent months helped crops, the Agriculture Ministry said.

Farmers will produce between 62.5 million metric tons and 63.6 million tons of soybeans next year, up from an October estimate of 62.3 million to 63.3 million tons, the ministry’s Conab crop-forecasting agency said today in an e-mailed report. Production will rise from 57.1 million this year.

“We expect good weather for the development of the crop this season,” said Sergio Porto, a director at Conab, referring to soybean, corn, cotton and rice crops. “Yields of these crops may be boosted,” he said today at a news conference in Brasilia.

Mills will crush more of the oilseed next year after the Brazilian government last month increased the amount of biofuel that must be added to diesel. Conab raised its crushing outlook to 32.3 million tons, from 32 million projected in October.

Conab also said today that it maintained its October forecast for corn output next year at 50.9 million to 52.2 million tons. Production was 51 million tons this year.

Brazil is the third-largest corn producer after the U.S. and China. The U.S. is the world’s largest soybean producer.

To contact the reporter responsible for this story: Lucia Kassai at lkassai@bloomberg.net; To contact the reporter on this story: Maria Rabello in Brasilia at mrabello@bloomberg.net

Last Updated: November 5, 2009 09:03 EST