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The Canadian dollar made new seven month highs, moving as high as the 89 US cent level in early Friday morning activity.

Canola values had found some support overnight from the advances in e-CBOT soybeans, Chinese rapeseed, Malaysian palm oil and Matif rapeseed values.

Some of the selling that surfaced in the nearby July contract, and to some degree in November, came from the speculative sector and was believed to be the evening up of positions ahead of the weekend, brokers said.

A small pick up in producer offerings into the cash pipeline was also evident and helped to weigh on the nearby month. Traders noted that advisories have been issued by brokers to their farmer clients to take advantage of recent price strength in the canola cash market.

Crush margins for domestic processors have lost ground over the past week, which in turn has reduced demand from that sector for canola, brokers said. The booking of fresh export business has also subsided, although the pricing of routine canola sales continues.

A downturn in global crude oil values were also viewed as an undermining price influence in canola.

The losses in canola were being offset by the advances being seen in CBOT soybean and soyoil values. Concerns about seeding delays in western Canada due to cool temperatures and a combination of too wet, or too dry soil conditions, helped to keep a floor under values, brokers said.

There were an estimated 4,589 canola contracts traded at 10:49 CDT. Of the contracts traded, 1,498 were spread related.

At 10:49 CDT, 40 western barley future had changed hands. The lack of demand and light commercial liquidation took the nearby July contract down, brokers said.

Prices in Canadian dollars per metric ton at 10:49 am CDT: