Sept. 8 (Bloomberg) -- Brazil, the world's second-largest soybean producer, said its 2004-2005 grain crop was 4.7 percent smaller than a year earlier because of the worst drought in 40 years.

Brazil's 2004-2005 grain harvest of soybeans, wheat, corn, barley and other gains fell to 113.5 million metric tons from 119.1 million tons in the previous crop year, the government's crop forecasting agency said in a statement distributed to journalists.

Soybean output rose 2.6 percent to 51.1 million metric tons from 49.8 million metric tons in the previous crop.

The agency estimated that soy exports from this crop would rise to 20.5 million tons from 19.25 million tons exported from the previous crop.

The totals were based on survey was conducted from Aug. 22 to Aug. 26 by 40 researchers.

To contact the reporter on this story: Katia Cortes in Brasilia at kcortes@bloomberg.net.

Last Updated: September 8, 2005 10:14 EDT