After 2011’s highs, the prices of key commodities such as sugar, coffee and cocoa are set to fall next year, Rabobank has predicted.

In its commodities outlook for 2012 - Down But Not Out - the bank said it expected better supply would cause average prices of most commodities to come down, although they were unlikely to plunge to the depths of 2008-2009.

However, considerable uncertainties and risks remained that could lead to renewed spikes, said Rabobank, with the economic slowdown, speculator activity, the strength of the dollar, policy risks and capacity constraints the key determinants.

Grains, oilseeds and cocoa would be most at risk in 2012, it added, not least because key producing regions such as West Africa remained politically volatile, while others could implement interventionist policies.