Lates News

According to the Financial Times, the Iran war has caused significant volatility in the energy market and intensified concerns about a long-term interruption in fuel supply through the Hormuz Strait. Hedge funds have been pouring into agricultural markets used for producing biofuels. Data from the US Commodity Futures Trading Commission shows that since the outbreak of conflict in the Middle East, funds have nearly doubled their net bets on soybean oil, used for producing biodiesel. Betting on corn, the raw material for ethanol, has also shifted from expecting prices to drop to the highest bullish levels this year. Hedge fund managers and traders say that oil prices have surged since the conflict broke out, and many funds believe that agricultural prices will be the next market to rise. Doug King, head of RCMA Capital, said regarding the rapid changes in hedge funds' positions in these soft commodities areas: "I don't think this is just a steady adjustment, but rather a lightning fast attack."