Don’t look now, but hedge funds are heading to Malaysia, where oil grows on trees – palm trees, that is. According to Reuters, hedge funds are suddenly turning their attention to the latest trend in commodities after avoiding it for years, as Europe and Asia’s current love affair with biofuel has sparked renewed interest in palm oil. Over the next few months, says Reuters, hedge funds will be looking to capitalize on the oil, not just as alternative fuel but also as an ingredient – though reportedly an unhealthful one – for many a food products. "Funds have never been active in this market because there was nothing to really trigger prices," an analyst with CIMB Securities told Reuters. "But now the situation is changing." The demand has created a volatility in the palm oil market not seen before, and which is much to the liking of hedge funds. Alas, the increased demand may lead to shortages in Malaysia and nearby Indonesia by year’s end, and we all know what that means.