Indian soyoil up on Argentina protests, spot

MUMBAI, Feb 24 (Reuters) - Indian soyoil futures rose on Tuesday as spot demand improved and a farmers' strike in Argentina triggered short covering.

A firm soybean market also supported soyoil prices.

By 3:22 p.m. (0952 GMT), the March futures NSOH9 contract was up 1.21 percent at 441.90 rupees ($8.8) per 10 kg on the National Commodity and Derivatives Exchange.

The April contract had risen 1.19 percent to 433.5 rupees after falling more than 6 percent in last 10 sessions.

Prices in the spot market in the western city of Mumbai rose 0.71 percent to 425 rupees per 10 kg.

Farmers in Argentina, the world's third largest soybean producer, are protesting against a tax on soy exports and other government agricultural policies. The strike is due to end at midday on Tuesday. [ID:nN23355289]

India imports more than 40 percent of its edible oil in the form of soyoil from Argentina and Brazil and palm oil from Malaysian and Indonesia.

"Soyoil market is tracking gains in soybean and strike in Argentina, but the gains will be short-term as edible oil from winter-sown oilseeds hit the market," a trader in central city of Indore, a hub for soyoil trade, said.

Weakness in Malaysian palm oil weighed on the markets.

Benchmark May palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange were down 0.64 percent at 1,868 ringgit a tonne at 0952 GMT.

($1=49.9 rupees) (Reporting by Abhishek Shanker)