WINNIPEG, (Manitoba): ICE canola futures surged on Friday on spreads against soybean oil and after a Canadian government report pegged the harvest smaller than expected.

Canola has been trading at a large discount to soyoil and, with soyoil down sharply over disappointing US government biofuels targets, investors bought canola to narrow the spread, a trader said. Further support came from diminishing Canadian canola supplies.