A bumper crop last season has left many grain growers sitting on surplus feed grain.
The most recent Arable Industry survey has found huge volumes of grain still stored on farms.
One market analyst says some growers may now be getting anxious about freeing up storage space for the next crop, due to be harvested in late summer.
Ivan Luketina of NZX Agrifax says the local feed grain market has been sluggish lately with a lack of demand from the dairy sector and some growers could be feeling pressure to shift the surplus feed grain.
But he says recent dry weather could help lift demand.
Federated Farmers grain and seed vice-chairman David Clark says while many tonnes of grain are still sitting in farm silos, nearly all of it has been forward sold to companies, which have delayed the delivery date after using Australian grain earlier in the season.
Mr Clark says the grain survey does not adequately reflect how many growers are leaving the industry and that this is having a big impact on the supply and demand equation.
