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WINNIPEG, (Manitoba): ICE canola futures surged on Monday, rebounding from earlier losses on strength in rival commodities soybean oil and palm.

Hot, dry weather is reducing canola yield potential on the Canadian Prairies, with the extent of damage not yet well understood, a broker said. Demand rationing, caused by high prices, has at times weakened canola compared to its rival oilseeds in recent sessions, the broker said.

November canola gained $13 to $896.40 per tonne. November-January canola spread traded 1,016 times. Malaysian palm oil futures led the way higher for oilseeds, as palm production fell more than 10% in July.

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