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ICE Canadian canola futures climbed to a fresh five-month high on Friday, buoyed by rising US grain prices, and posted their fifth straight weekly gain. March touched $556.60, the highest price for a nearby contract on a continuous chart since September 21. Nearby contract registered 3.6 percent weekly gain, the largest in four months.
Commodity fund buying on strong technicals added to strength. 14-day RSI for nearby contract indicates overbought conditions. Modest selling near the close, ahead of three-day holiday weekend, pared gains slightly. March canola gained $5.30 at $554.50 a tonne on volume of 10,811 contracts. Has finished higher 10 of last 11 sessions.
May rose $4.50 at $556.00 on volume of 14,034 contracts. March-May spread traded 9,250 times, settling at a May premium of $1.50. Chicago March soybeans rose 9-1/4 US cents to US $12.67-1/2 per bushel, supported by sales to China. March soyoil gained 0.35 cent to 53.40 US cents per lb. MATIF May rapeseed ticked up 0.2 percent. The Canadian dollar was trading at $0.9959 against the US dollar, or US $1.0041, at 1:21 pm CST (1921 GMT), up slightly from Thursday's North American session close of $0.9965 versus the US dollar, or US $1.0035.

Copyright Reuters, 2012

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