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Faced with adverse climatic developments since the last report, the Buenos Aires Grain Exchange has updated the estimate of the impact of the drought on the Argentine economy, given the new production situation and prices
According to the Weekly Agricultural Outlook, maize production for the 2017/18 season is estimated at 32 million tonnes, while soybean production is 36 million tonnes, representing reductions of 22% and 33% respectively from current forecasts at the beginning of the agricultural cycle
A total of 27 million tonnes of coarse grains were lost. These losses will severely affect the sector's contribution to gross domestic product (GDP), which will show a $ 5.895 billion reduction from the level that would have been achieved had initial estimates been met.
Thus, during 2018, Argentina will see its growth decreased by 0.9% due to the water deficit. On the other hand, net exports will be down $ 5,374 million. These estimates include the direct effects of drought on each link in the soybean and maize value chains.
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