* Germany may back position limits in commodity markets
* Daily commodity price movements should be limited
* Transaction register, position reports favoured
HAMBURG, April 13 (Reuters) - Germany supports French proposals for commodity market regulation and believes limits on commodity trading positions should be considered, German Agriculture and Consumer Protection Minister Ilse Aigner said.
Limits on positions individual investors can hold in commodities along with limits on daily price movements are "worth considering", Aigner said in a statement on Wednesday.
France said on Monday it would urge G20 nations this week to support limits on trading positions and margin calls in commodities markets, allowing for intervention at times of proven instability.
French President Nicolas Sarkozy has called for tough measures to limit speculation in commodities markets, which he blames for driving up global prices of oil and food.
Aigner said on Wednesday that more transparency was needed in agricultural commodities markets to limit the impact of speculation.
"Germany supports the initiative from France, in the framework of the G20, for an action plan to improve the global food situation and to contain extreme price movements," Aigner said.
The G20 group, which includes rich and developing nations such as China, India and Brazil, is meeting in Washington this week. France says it will push for backing of its plan to restrict outside financial investment in commodities markets.
Aigner said limits on daily commodity price movements should be considered for specific products including grains and soybeans.
Market oversight authorities could then intervene automatically and decide whether trade should be temporarily stopped, she said.
Regular reports on commodity market trading positions, common in the United States, should also be introduced elsewhere, she said.
"A prime principle must be more transparency," she said.
It must be clear to all sides which groups are using the commodity markets for financial investment and which are seeking to actually buy the raw materials themselves, she said.
"This could be commodity traders who wish to hedge their risks or pure financial jugglers playing poker for fast profit," she said.
A transaction register for commodities markets would also create transparency and the possibility to intervene if necessary, she said.
"Food markets may not become the object of speculators," she said. "Food and agricultural commodities are not just another product. They involve the basis of life for billions of people."
(Reporting by Michael Hogan; Editing by Jane Baird)