EUROPE: A reduction in cereal production is forecast in the EU in 2005 after the bumper crop last year, reflecting an area reduction and lower yields than last year�s high levels. However, while yields and outputs remain somewhat above average in most member countries, the outlook is poor in Spain and Portugal because of persisting drought. Some reduction in output is also in prospect in the Balkan countries, despite generally favourable conditions, because also in these parts, yields are not expected to match last year�s exceptionally good levels. In the European CIS, spring cereal planting was delayed owing to unfavourable weather while winterkill was low given above average snowfall providing protective cover.