HUNGARY (8 April)

Prospects for the 1998 cereal harvest remain uncertain. The winter wheat area for harvest this summer is expected to be about 10 percent down from the previous year's due to reduced plantings last autumn, and winterkill caused by dry weather and severe frost during periods of limited snow cover. Although, in March, soil conditions were reported to be generally extremely dry, and close to drought levels in some parts, average yields could still be achieved if April and May rainfall is normal. The current dry conditions could also affect spring planting and germination of summer crops but early indications, assuming normal rainfall arrives soon, point to the likelihood of larger maize plantings at the expense of other non-cereal crops. However, the final outcome of the 1998 cereal harvest will depend greatly on weather conditions in the coming few weeks.