TORONTO (Bloomberg) - Canadian stocks advanced as record gold, platinum, corn and soybean prices pushed a group of raw-material producers to a new high.

Potash Corporation of Saskatchewan Inc., the world's biggest fertilizer maker, rose the most since 2004 in Toronto Stock Exchange trading as a gauge of commodity prices reached a record. Yamana Gold Inc. climbed for a fifth day after saying it will develop mines in South America and increase production by as much as 39 percent.

"We're still bullish on commodities," said John Kinsey, who helps manage about $1.9 billion for Caldwell Securities Ltd. in Toronto. "Oil and precious metals have been the place that you want to be."

The Standard & Poor's/TSX Composite Index added 65.71, or 0.5 percent, to 13,698.28. Since the beginning of the year, the measure has slipped one percent.

Commodity producers in the S&P/TSX rose 2.3 percent, the steepest climb among industry groups. Speculation that demand for feed and biofuel will exceed production for the seventh time in eight years boosted corn prices to the highest ever.

Wheat, which has doubled in the past year, rose the maximum permitted by the Chicago Board of Trade. For a second straight session, cotton climbed the maximum permitted by ICE Futures US.

Potash added C$11.16, or 7.9 percent, to a record C$152.86. Smaller rival Agrium Inc. rose C$1.23 to C$71.33.

Declines in the value of the US dollar increased demand for precious metals and farm products as alternative investments to stocks and bonds.

Higher oil and copper prices helped push the UBS Bloomberg Constant Maturity Commodity Index to a new peak.

Gold futures rose as high as $915.90 in New York, the steepest price ever for a most-active contract.

Yamana Gold rose 50 cents, or three percent, to C$17.25. The company, which last year bought rivals Meridian Gold Inc. and Northern Orion Inc., said it expects production to climb to as much as 1.35 million gold equivalent ounces in 2008, from 933,000 ounces last year.

The company boosted its forecast because of higher-than-expected output from the former Meridian mine El Penon in Chile, said CEO Peter Marrone.

Barrick Gold Corp., the world's biggest bullion miner, added 11 cents to a record C$52.37. Smaller rival Goldcorp Inc. advanced 22 cents to C$39.03.