Hedge funds have tripled net bets on soyabean oil, a key biodiesel feedstock, since the Iran conflict erupted, drawing on data from the US Commodity Futures Trading Commission. The move follows a jump in oil prices from $72 to over $100 a barrel, prompting investors to chase higher processing margins.

Doug King of RCMA Capital described the shift as a “blitzkrieg” in soft commodities, citing government pressure to expand domestic biofuel production. Corn, an ethanol ingredient, now carries the highest positive bets of the year, while soyabean oil prices have climbed roughly 23 percent.

Neuberger Berman’s Hakan Kaya warns that energy‑driven demand could spill into food markets, as fertilizer supplies contract from the Strait of Hormuz. The current rally reflects investors’ bet that sustained high oil prices will lift biofuel and agricultural commodity prices, reshaping supply chains and profit margins.