Prospects for the 2002 cereal crops deteriorated sharply during July and August due to one of the worst droughts on record in Western Canada where the bulk of the small grain crops are grown. In eastern Canada where most of the maize is produced crop conditions are better than last year and yields are expected to improve from last year’s low levels. As of late August, the official forecast for total wheat production had been reduced to 15.4 million tonnes, 5 million tonnes down from last year and almost 40 percent below the five-year average. Barley production is forecast to fall sharply also, to 7.9 million tonnes, the lowest level since 1968. By contrast, the maize crop is forecast to increase marginally this year to almost 8.5 million tonnes.