Recent falls of rain across large swathes of the north-east, east and south Gippsland have seen a correction in fodder and grain prices.
Falls of more than 100mm delivered much appreciated moisture to paddocks as well as a fall in hay and grain prices.
South Gippsland dairy farmer, James Dillon, Ruby, said the season had been "really good".
He said hay yield was up to expectations and the rain meant he had fed out less hay.
Mr Dillon 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", he said.
Given the level of hay purchased earlier and fed, a sniff of relief with the rain was enough to see inquiry soften.
Mr McKew said that 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 for tradeable quantities.
He said the relief from the rain and reduction in demand would provide some breathing space in terms of supply.
The hay season had been a "mixed bag" with some areas of South Gippsland and south west Victoria and south east of South Australia.
There was reasonable levels of supply coming out of Victoria and SA to fill the needs of NSW and Queensland as well as east Gippsland.
"We didn't have any carryover stocks going into the 2019/20 harvest," he said.
"There was nothing really left from the 18/19 harvest."
Mr McKew said the amount of loads on the road had slowed after the rain and that would continue if further rain was received.
The easing off in demand would also see a rapid easing, correction, of prices as well, he said.
Dairy farmer demand for hay from east Gippsland would see supply being drawn from south west Victoria in particular.
There was 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 the Dairy Australia Hay & Grain report, 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 (up to February 28). There was an exception for barley in the south west which was quoted as being $5 a tonne down.