The domestic market is currently in an adjustment phase after it had been operating in drought mode. Some features were prices well above export as there was increased grain demand for drought feeding of sheep and beef cattle, including an element ofgrain feeding cattle that would normally have been finished on grass. This extra demand for grain had not been in budgets and had to be sourced through cash buying. When the drought extended into May, prices were moving up steadily and strongly and thiscaused many to buy extra grain to meet drought feeding demand through to October. This was to provide some input cost protection, should the drought period extend beyond May.
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