The outlook for the 1996 cereal crop has deteriorated in the last two months. The area sown to cereals and pulses for harvest in 1996 is now estimated by FAO at 13.9 million hectares, similar to last year. This estimate includes an allowance of about 1.5 million hectares planted to grains on subsidiary plots and by private farmers. On large farms, reduced winter kill and a marginal increase in the area sown to winter grains has helped to offset the fall of almost 1 million hectares in spring grain plantings. Growing conditions have not been good since the onset of spring. Precipitation has been below average and hot and dry weather in June and July have caused yield losses for both winter and spring grains. Early harvest returns (form state farms only) indicate, that yields are markedly lower than last year. The 1996 grain harvest is now forecast to be around 30 million tons, some 5 million tons less than last year and well below the target of 39 million tons.