Morgan Stanley said its commodity results fell in the fourth quarter from a year earlier, and trading risks for the sector were also lower.

"Commodities results declined meaningfully in a challenging market," the bank said.

Morgan Stanley's Value-at-Risk (VaR) in commodities stood at $22 million in the fourth quarter, unchanged from the previous three months but down from $26 million in the 2011 fourth quarter.

(Reporting By Barani Krishnan)