The area of 1997 winter crops is tentatively estimated to be similar to last year and weather conditions are reported to have been generally favourable over the winter. Latest reports on the 1996/97 cereal supply/demand situation indicate that supplies of the 1996 crop will not be sufficient to cover domestic demand until the next crop is harvested, and increased imports of grain are expected. A shortage is expected mainly of feed grain in addition to some rye for milling and baking.