ICE canola futures fall on rain and soy weakness

WINNIPEG, Manitoba, June 23 (Reuters) - ICE canola futures fell hard on Monday, with general rains across Western Canada and weakness in Chicago markets undermining fears of crop shortages.

• November canola RSX5 settled down $17.50 at $725.20 per metric ton. July RSN5 settled down $22 at $721.60.

• A month of dryness across Western Canada has worried farmers and provided a risk premium to canola futures prices in recent weeks, traders said. Last week weather forecasts began to predict substantial rainfall for the weekend, allowing for some of the premium to be lifted. Monday saw more of that premium disappear after the rain proved to be as significant as forecast, traders said.

• The rain lifts some of the stress on crops that had become very parched by weeks of dry weather, farmers said. Especially in western regions, which have had years of dry conditions, the rain will save many crops that had only a few days left before becoming broken by drought.

• The inversion of the old crop to new crop contact months, which began in late March, disappeared on Monday. The trend saw an inversion rise to more than $50 per ton on May 2 become eliminated with steady narrowing to June 23.

• Chicago Board of Trade soyoil futures BOv1 fell 1.32%.

• Euronext August rapeseed futures COMQ5 fell 1.2%.

• Malaysian palm oil futures FCPOc3 rose 0.19%. POI/

• The Canadian dollar CAD= weakened. CAD/