Prospects deteriorated somewhat for the bulk of the wheat and coarse grain crops during July and early August due to generally hot and dry conditions which have reduced moisture availability and led to premature maturation in parts. The exception is the Peace River region in northern Alberta where ample moisture has been available throughout the season. In the previously flooded Red River valley, crops need continued hot weather to make use of available moisture. Based on the latest official estimates of seeded area for the 1997 harvest, and assuming a somewhat lower yield than earlier anticipated, because of the adverse weather, wheat output in 1997 is now forecast at about 26 million tons, 15 percent down from 1996, while coarse grains output is forecast 4 percent down at 27.5 million tons.