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WINNIPEG, (Manitoba): ICE canola futures surged on Friday to the daily limit gain, on concerns that drought on the Canadian Prairies would shrink production.

Farmers, facing smaller harvests, are paying penalties to cancel contracts for delivery to grain handlers, driving prices up further, a broker said. The broker added that the Prairies’ long-range forecast looks hot and dry.

Most-active November canola jumped $30 or 3.7% to $844 per tonne, a fresh contract high.

November-January canola spread traded 727 times.

Chicago corn futures dipped as rain and moderate temperatures were expected to boost US Midwest crops. Euronext November rapeseed futures and Malaysian September palm oil futures rose.

Canada ordered trains to cease operations for 48 hours in areas of British Columbia hit by a recent spate of wildfires.

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