Yes, but only after you receive written notice from your seller that they want to terminate their listing contract prior to its expiration date. Within three (3) days receipt of that signed notice, you are required to update the status of the listing entry in the MLS to Canceled. This is the only circumstance where you can and must use the Canceled status.
Another key point to remember: each listing entry is for a single, listing contract. Before you mark the listing as Canceled be sure to review the private remarks and remove any references to scheduling showings or future marketing efforts.