Brazil's soybean crop is set to set a record even more convincingly than had been thought thanks to rains which are proving more plentiful than in neighbouring Argentina.

Brazil's crop supply bureau, Conab, has raised to 62.5m-63.6m tonnes its forecast for output from the world's second biggest producer in 2009-10.

The revised range beats a previous forecast of 62.26m-63.27m tonnes and a Washington estimate of 62.0m tonnes. It would also outdo the 61.0m-tonne crop achieved two years ago.

Nonetheless, the projection is below some analyst estimates of a crop approaching 65m tonnes.

Forecasts for South America's soybean crops, which will begin coming into the market early next year, are being keenly watched in Chicago, where a supply squeeze is supporting prices of above $10 a bushel.

'Above-average rains'

Conab said the revision reflected forecast of "good weather" for a range of crops, including corn, cotton and rice as well as soybeans.

Plantings were estimated at 22.4m-22.7m hectares, up from 21.7m hectares a year before.

Brazil's optimism over weather contrasts with growing concerns in Argentina, where October rains as low as 16% of the average have left some areas facing a second successive year of drought.

Oil World, the German analysis group, earlier this week cut by 2.0m tonnes, to 50.0m tonnes, its forecast for Argentina's 2009-10 soybean production.