"They [prices] are influenced by global and domestic pressures, they don't operate in isolation, and are very much linked to the global market," TAP AgriCo managing director David Skipper said this week.

"In Tasmania, we take our lead from Victoria, as we only produce one third of what is in demand, so a lot of it is import.

"So everything has to be based on the import parity, which is then about going back through the global market.

"We've seen a deterioration in grain prices over the last six months or so and that is mainly from the huge ending stock supply of grain, which has had a big bearing on the price.

"China accounts for 40 per cent of that total ending stock, which is a little bit of concern seeing where China is at the moment.

"It [the situation improving] is going to come down consumption and if there is a correction the market will make that correction due to a price correction, and there won't be as much produced with the price softening.

"It can be difficult to tell as these markets are all about emotions and perceptions, but generally what we are seeing is a softening of prices, but how far they will soften is still to be determined."

Mr Phillips shared these thoughts at the Southern Farming System's Annual Results Day at Cressy last Wednesday, an event which was attended by about 70 people.

"We need to be a niche producer sometimes, so I just spoke about some of the new stuff, such as ultra low-gluten barley, which are going into the food markets."

The event is an annual information day for farmers.