Hedge funds are increasingly investing in agricultural commodities, particularly soyabean oil and corn, as the ongoing conflict in Iran has caused oil prices to surge from $72 to over $100 per barrel. This shift reflects a strategic pivot towards biofuels, driven by expectations of rising demand as governments seek to reduce reliance on imported hydrocarbons. Data from the US Commodity Futures Trading Commission shows that hedge funds have nearly tripled their net positions in soyabean oil, which is essential for biodiesel production, while also increasing their positive bets on corn, a key ingredient in ethanol. The conflict has raised concerns about fuel and fertilizer shortages, prompting the UN to warn of a potential global food crisis. Despite these challenges, agricultural markets have seen relatively moderate price increases, with corn rising about 6% and soyabean oil up approximately 23%. Analysts like Hakan Kaya from Neuberger Berman are betting on agricultural commodities to benefit from the energy market shock, as they anticipate that high energy prices will spill over into food prices. The situation is further complicated by geopolitical dynamics, with discussions about US soyabean purchases by China expected to take place amid rising trade tensions. Overall, while the immediate agricultural supply is not severely impacted, the shift towards biofuels could exacerbate food security issues if crops are diverted from food production to energy.