India soyoil rise on firm palm; outlook bearish

MUMBAI, March 26 (Reuters) - Indian soyoil futures rose on Thursday afternoon on firm Malaysian palm oil and tracking seven-day farmers' strike in Argentina, a leading exporter, which entered its fifth day on Wednesday.

By 2:19 p.m. (0849 GMT), the April contract NSOJ9 rose 0.4 percent to 447.85 rupees ($8.9) per 10 kg on the National Commodity and Derivatives Exchange. The May contract NSOK9 rose 0.5 percent to 444.7 rupees.

Prices in the spot market in Indore, a hub for soyoil trade in India, was steady at 43,200 rupees per tonne.

Striking Argentine farmers protested along rural highways for a fifth day on Wednesday and worked to build support in Congress for their calls to cut taxes on soy exports. See[ID:nN25445551]

Firm Malaysian palm and U.S. soyoil supported the soyoil prices.

The benchmark June palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange was up 1.77 percent at 2,007 ringgit a tonne at 0853 GMT.

However markets may turn bearish on expectations of a surge in soyoil imports, after government formally abolished a 20 percent duty on crude soyoil imports, early this week, and on a rise in rapeseed oil supplies, a substitute for soyoil, analysts said.

"Prices may see a downward trend from next week after rapeseed oil supplies rise," said a trader in western state of Rajasthan, the largest producer.

Most of the mills in the state have started crushing and rapeseed oil supplies may rise from coming weeks, traders said. ($1=50.6 rupees) (Reporting by Abhishek Shanker; Editing by Ben Tan)