CHICAGO: ICE canola futures surged on record volume on Friday, supported by concerns about hot and dry weather stunting crop development and a round of short-covering.

The most-active November contract jumped 2.5% and hit its highest since April 3. The contract has risen six times in the last seven sessions.

Nearly 90,000 canola contracts traded on Friday, surpassing the previous record set in Feb 2014, a trader said. Prices closed below their session peaks as farmers took advantage of the rally to book some sales on the cash market, which led to some commercial hedging.

Most-active November canola gained $17.40 to settle at $710.40 per metric ton. The contract rose above the high end of its 20-day Bollinger range for the first time since January during the session. July-November canola spread, the most active inter-month spread, traded 13,348 times.

US corn, soybean and wheat futures all set multi-month highs on Friday as worries about stressful dry conditions in key portions of the Midwest prompted a flurry of buying ahead of a three-day holiday weekend. Euronext August rapeseed futures jumped 6.4% and hit their highest since April 18.

ICE canola futures spiked 3% on Thursday to a nearly one-month high, lifted by short-covering and spill-over strength from US crops as concerns grew about dry conditions in the Midwest.

Canola’s gains lagged those of soybean oil, a closely related commodity, with the Canadian dollar strengthening to a 7-month high versus the greenback, making canola in theory less attractive in export markets. Commodity funds covered some of their short canola positions with key contracts breaching their 40- and 50-day moving averages, a trader said.

Most-active November canola gained $21.10 or 3.1% to settle at $693 per metric ton. July-November canola spread, the most active inter-month spread, traded 13,706 times. US corn futures hit their highest levels in nearly two months and soybeans hit a one-month high as forecasts for continued dry weather in the Midwest raised concerns about yield prospects.