Argentina’s Buenos Aires grains exchange on Thursday further cut its estimates for the season’s corn and soybean harvests, as a devastating drought impacts the major grains exporter’s main agricultural region, reported Reuters.

Argentina is the world’s top exporter of both soybean meal and oil and third largest corn exporter, but the drought which began in May has caused forecasters to repeatedly trim down their estimates, threatening not only farmers but the whole economy which needs foreign currency as it faces soaring inflation.

The exchange now expects a 2022/2023 soybean harvest of 29 million tonnes, down from the 33.5 million tonnes previously estimated. Corn output is now forecast at 37.5 million tonnes, down from previous forecasts of 41 million tonnes.

In a weekly crop report, the exchange said another week of high temperatures was generating additional losses, as well as losses to the size of the area which could be harvested.

Farmers reported yield losses up as much as 50% compared to the averages of the last five campaigns, it added, with corn and soy being the “most affected.” In the previous season, also affected by dry weather though to a lesser extent, Argentina had produced 43.3 million tonnes of soybeans while corn harvests landed at 52 million tonnes.

Earlier this month, a business consortium warned the losses could cost the country over $20 billion.