Shares in Australian agricultural companies are poised to break a period of underperformance, with prospects only bettered by healthcare companies.

Investors in businesses such as AWB, Elders and Incitec Pivot can expect returns of 17.7% over the next year, including dividends, Commonwealth Bank of Australia said, from a survey of analysts' estimates.

The figure is an improvement on than the 12.3% returns forecast revealed in August's survey and follows a period of relatively weak performance by agricultural group, which have underperformed average Australian shares over the last one month, three months, six months and 12 months.

Since April 2000, the sector has returned 75%, compared with 113% in the average Australian share.

'Healthy and on-form'

Analysts' improved hopes for agribusiness, which they have placed only narrowly behind healthcare in return prospects, reflected the industry's position as "healthy and on-form to recovery", Brendan White, head of CBA agribusiness banking, said.

"Two of the largest companies... Incitec Pivot and ABB Grain, have performed exceptionally well," he said.

Besides increasing hopes for Australia's grain harvest, which should push large volumes through grain handlers and keep farmers' cashflow ticking over, shares in some Australian agribusinesses have also been boosted by bids.

ABB is being bought by Canada's Viterra, while chemicals group Nufarm is in talks with China's Sinochem.

Other companies covered in CBA's Agri Index include GrainCorp, Gunns, Ridley Corporation and Tassal Group.