Indian soyoil down on expected edible oil supplies

MUMBAI, Feb 11 (Reuters) - Indian soyoil futures fell on Wednesday afternoon, tracking losses in Malaysian palm markets and with edible oil supplies due to rise as local oilseed crops are harvested and crushed.

But losses were limited after the U.S. Department of Agriculture late on Tuesday cut its Argentine soy crop forecast by 5.7 million tonnes to 43.8 million tonnes. [ID:nN10293280]

By 2:20 p.m. (0850 GMT), the March futures NSOH9 contract was down 1.40 percent at 451.1 rupees ($9.3) per 10 kg on the National Commodity and Derivatives Exchange.

The February contract NSOG9, which expires on Feb. 20, had fallen 1.01 percent to 461.55 rupees.

Arrivals of rapeseed, India's main winter-grown oilseed, are picking up and crushing would soon release extra supplies of oil into the open market, analysts said.

"Weak local demand and falls in the global markets are putting pressure on the prices," Veeresh Hiremath, an analyst in Karvy Comtrade Ltd, added.

Weak Malaysian palm oil market and losses in U.S. soyoil futures weighed on markets.

The benchmark palm oil April contract KPOc3 on the Bursa Malaysia Derivatives Exchange was down 0.76 percent at 1,954 ringgit a tonne at 0859 GMT. ($1=48.7 rupees) (Reporting by Abhishek Shanker, Editing by Mark Williams)