Hedge Funds Surge Into Biofuel Crops as Soybean Oil Positions Nearly Triple Amid Iran Conflict

According to Financial Times, hedge funds have surged into agricultural commodity markets for biofuel production following energy market volatility triggered by the Iran conflict. Net positions in soybean oil, used for biodiesel production, have nearly tripled since the outbreak of the Middle East conflict, according to U.S. Commodity Futures Trading Commission data. Corn positions for ethanol production have shifted from bearish to the year's highest bullish levels. Fund managers cited oil price spikes and expectations that agricultural commodities will be the next market to rise.
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