The International Grains Council has lowered its 2011-12 South American soy output forecast by 3.6 million tonnes, or 15% on-year, to 115.9 million tonnes Friday (April 27) because of a severe drought.

This is the sixth successive cut in the IGC's projections for South American soy output since September 2011, when the region's production was pegged at 137.6 million tonnes, showing that more than 20 million tonnes have been lost to the drought.

Earlier this month, the IGC cut its South American soy output estimate by 4.4 million tonnes.

South America is the major global soy and soymeal supplier during the March-August period before the US harvest, and a lower crop will put additional demand pressure on US inventories.