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At least four funds launched in the past week have offered exposure to the performance of such markets as rice, wheat and soybean.

Among them are Barclays Global Agriculture Delta Fund and BNP Paribas Agriculture Fund, available to retail investors for a minimum investment of 1,000 Singapore dollars (Bt23,000).

Merrill Lynch is distributing its Citrine Agriculture Booster Notes, linked to six indexes. At least three private banks recently launched their own products.

Investors flush with cash after exiting equity markets are reportedly moving some money into the new funds as prices of food and other produce soar.

Global food prices have risen 45 per cent on average in the past nine months, according to the World Bank.

Agriculture is the "most promising area of the commodities sector", investment analyst Jim Rogers said at the launch of the Barclays agriculture fund. The "bull run could last for 10 years", he said.

Huge populations in China and India are consuming more food, Rogers said.

Industry players expect the funds to reach annual returns to 20 per cent, the report said.

Meanwhile, palm-oil futures in Malaysia rose a third day after record crude-oil prices and the outlook for tighter soybean oil supply boosted the appeal of the commodity for biofuels and food.

Palm oil and its main substitute soybean oil - mostly used in cooking - often advance when crude prices rise as it increases the appeal of alternative fuels. Oil reached a record US$126.27 (Bt4,062) a barrel in New York last Friday and climbed as high as $126.20 a barrel in Asian trading yesterday.

"The surge in crude oil prices to $126 a barrel will continue to support energy-elated commodities including soy oil and palm-oil prices," analysts Vincent Khoo and Ong Chee Ting at Aseambankers Malaysia said yesterday.

Palm oil for July delivery rose as much as 128 ringgit (Bt128) or 3.7 per cent to M$3,623 a tonne on the Malaysia Derivatives Exchange.