Grain prices are likely to remain volatile in 2012, but below the highs witnessed this year, Heike Harmgart, Senior Economist at the European Bank for Reconstruction and Development told Dow Jones Newswires Wednesday.

"Although there are good predictions for the winter grains harvest at present, drought and frost issues in Ukraine could mean the crop could be smaller than expected, so volatility is there to remain next year," Harmgart said.

Offre & Demande Agricole said recently the condition of winter crops is poor in the Ukraine and market participants are closely watching the weather in Eastern Europe.

Next year, in grains markets, prices will be characterized by elevated prices, but it would be surprising if prices were to reach the peaks hit this year, Harmgart said, although the volatile swings in prices would remain intact.

"I personally hope that 2012 will not see a lot of trade restrictions in food markets, as seen this year," EBRD's Harmgart said. "Trade restrictions this year were indeed responsible for a significant part of the price spikes we saw in food commodities this year."

-By Neena Rai, Dow Jones Newswires; 4420-7842-9450; neena.rai@dowjones.com.

(END) Dow Jones Newswires

December 14, 2011 12:01 ET (17:01 GMT)