Oil World say that weather conditions and rapeseed crop prospects have improved in Germany and France. Rains have improved growing conditions in France, which had still been very dry until mid-May, they say.

Meanwhile, having appreciated rapid, Canadian canola prices are now vulnerable to a setback as they are currently overvalued relative to European rapeseed, they add.

Front month July Canadian canola started the month at CAD373.50/tonne but has soared to a high of CAD431.25/tonne this week on reports of huge areas of crops going unplanted, or drowning in flooded Canadian fields. July is currently more than CAD10 lower today at CAD418/tonne.

Environment Canada has issued further rainfall warnings for central and southwestern Saskatchewan, west-central Manitoba and southern Alberta this weekend as farmers attempt to get their soggy fields sown before Sunday's crop insurance deadline expires.