Investors are increasing allocations to food-related ETFs and futures markets as fertilizer prices rise. The Invesco DB Agriculture ETF saw record inflows of $413 million in the first quarter, while Teucrium's eight agricultural ETFs attracted $345 million year to date. Professional investors hold their largest net-long positions in all five food futures markets in a year. Geopolitical conflicts and a forecasted record El Niño are cited as threats to global food stocks, making food commodities a potential hedge.
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