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THE agriculture sector will continue to be one of the stock market's strongest performers over the next year despite a recent fall in investor returns.

The Commonwealth Bank's June Agri indicators report says primary producers are well placed to take advantage of recent rains and boost food production.

"Agriculture is still a top performer, and its dominance in the market is expected to hold in the coming 12 months, with forecast returns predicted to be around 11 per cent higher than those forecast for the broader market,'' the bank's general manager of agribusiness Jon Sutton said.

Recent rains across Australia's eastern seaboard had buoyed farmers, and opportunities for Australian farmers to play a greater role in global markets continued to increase as food security became a major issue.

"Australian primary producers are well placed to capitalise on this opportunity to provide more produce into the global market, and this will help stimulate further interest from local and international investors,'' Mr Sutton said.

The June Agri Indicators Report showed that the sector fell 1.8 per cent over the last month, but the broader index of the top 200 stocks dropped 4.9 per cent.

Year-on-year, the agriculture sector lifted 37 per cent compared to an 8.6 per cent drop on the S&P;/ASX 200 index.

The agricultural sector was on par with energy as the strongest performer.

However, the report said agribusiness stocks were a little overpriced, and forecast volatility, although down from last month, remained slightly elevated.