The drought in Brazil and Argentina floods threaten harvest of agriculture, giving rise to large hedge funds take long positions on agricultural crops.
The combined position of 11 agricultural commodities rose to 368.088 (futures and options) during the week ended April 19, according to the CFTC in the US compared to 177,770 one week earlier.
The Bloomberg Agriculture Subindex climbed 1.5 percent last week, after reaching the highest since July. The recent price gains have stoked speculation that futures may be bottoming after reaching multi-year lows this month.
Market participation expanded amid the rebound, with surging trading volumes and rising open interest.
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