However, despite its recent poor performance, the sector still maintains its stronghold as one of the

market's top performers, according to the July Commonwealth Bank Agri Indicators Report.

It states that although agri shares fell 9.2pc over the past month – just lower than the S&P/ASX 200 accumulation index at -10.2pc – its year-on-year performance was stellar, reaping investor returns of +13.7pc.

This compares to a dismal -21.5pc across the broader market, according to the CBA.

Agri was also one of only three sectors that managed to record positive growth over the period, the others being energy and materials.

Looking ahead to this financial year, the CBA says agri shares remain one of the best sectoral bets on a risk adjusted basis, with returns expected to be around 36pc.

"After two months of elevated exuberance, the cooling off in the agri sector over the past month is broadly in line with analysts' expectations that it would correct itself to fair pricing," Jon Sutton, executive general manager, Commonwealth Bank Agribusiness, said.

"The good news for investors looking to enter the market now is that the sector has actually been slightly over-corrected.

"Agri stocks are currently underpriced by -8pc and generally good value."