Brazil expected to plant more soybean, less corn in 2012/13

Brazil's area planted with soybeans should increase to 27.33 million hectares from last year's 25 million, supply agency Conab said in its first crop report of the season.

"This growth is due to excellent prices seen in the 2011/12 season that broke historic records due to the drop in production in the main producing countries," the agency said in reference to the worst U.S. drought in more than half a century.

Soybean output should be between 80 million and 82.8 million tonnes as yields return to normal after dry weather damaged Brazil's 2011/12 crop, the government said. Productivity should increase 14.3 percent to 3.03 tonnes per hectare compared to 2.651 tonnes per hectare last season.

Conab said Brazil's corn crop would be between 71.9 million and 73.2 million tonnes, compared with 72.6 million tonnes in 2011/12. Total area planted with corn is seen at up to 14.9 million hectares, down from 15.2 million hectares last year.