Recent falls of rain across large swathes of the Victoria, including in the north-east, East and South Gippsland, have seen a correction in fodder and grain prices there.
Falls of more than 100 millimetres delivered much appreciated moisture to paddocks.
South Gippsland dairy farmer James Dillon, Ruby, said the season had been "really good".
Mr Dillon said hay yield was up to expectations and the rain meant he had fed out less hay.
He said the barley price had recently fallen by $30 a tonne and that would reduce the cost of his feed mix.
Australian Fodder Industry Association chief executive John McKew said the recent rains were welcome "but it doesn't get you out of the danger zone".
Up to the end of February, the fodder market had proved responsive to rain and demand had softened "very quickly", Mr McKew said.
He said prior to the recent rain events he was concerned that the industry would have been running "very short on supply" from the beginning of autumn.
He said the relief from the rain and reduction in demand would provide some breathing space in terms of supply.
There were reasonable levels of supply coming out of Victoria and SA to fill the needs of NSW and Queensland as well as East Gippsland.
Mr McKew said hay being transported had slowed after the rain, which would continue if further rain was received.
The easing off in demand would also see a rapid correction of prices.
There were sufficient supplies of straw from south-west and central Victoria available at a decreasing price.
Those supplies would become useful as the supplies of cereal hay became lower.
According to Dairy Australia, there was some concerns in southern regions that the recent rains were early for an autumn break and to get maximum benefit, it would need to continue in March and April.
The report also quoted wheat and barley grain prices into the Goulburn Valley, Gippsland and south-west Victoria as remaining steady.
An exception being barley in the south west Victoria, quoted as $5/t down.