The good grain harvests of 1976 together with the favourable results in many countries for 1977 cereal harvests mean that for the next season or so the world probably has the assurance of adequate cereal supplies owing to the large carry-over stocks from 1976 harvests and the even larger carry-over stocks, particularly of coarse grains, obtained from 1977 harvests. Nevertheless, 1977 wheat output in some developing countries in Latin America and Africa was reduced below the previous year's levels. Furthermore, although wheat and coarse grain prices fell sharply during the 1976-77 crop year, thereby reducing the cost of imported grains for developing countries, the decline in prices, although followed by a recovery in 1977-78, had serious implications for world grain production and supplies in the longer-term since it pointed sooner or later to the probability of a fairly sharp reduction in cereal plantings by the major exporting countries.