EUROPE: The 2001 cereal area in the EC has declined and production will be down from last year's bumper level. Soil moisture conditions have generally improved in central and eastern European countries and better crops than last year are expected. In the CIS countries, early indications point to an increase in cereal production in 2001 in response to generally favourable weather conditions. Food assistance continues to be necessary for vulnerable populations in the Balkans, especially in the Federal republic of Yugoslavia, Chechnya and surrounding areas.