India soyoil rises on firm CBOT, spot; palm weighs

MUMBAI, April 6 (Reuters) - Indian soyoil futures rose on Monday afternoon tracking firm spot prices as buyers expected a rise in global demand on signs of an economic recovery and firm soyoil market on Chicago Board of Trade (CBOT).

Rise in crude oil prices and a forecast of lower soy output in Argentina, a leading producer, also supported prices. Firm crude oil prices may push up demand for soyoil from the biofuel sector globally, analysts said.

At 3:20 p.m., (0950 GMT), the April contract NSOJ9 was up 0.68 percent at 465.50 rupees ($9.3) per 10 kg on the National Commodity and Derivatives Exchange.

The May contract NSOK9 rose 0.58 percent to 468.45 rupees.

The prices in the spot market in central city of Indore, a hub for soyoil trade in India, rose 0.44 percent to 45,200 rupees per tonne.

July soyoil prices BON9 on Chicago Board of Trade (CBOT) rose 0.65 percent to 35.81 cents per pound during electronic trade on Monday.

The Buenos Aires Grains Exchange cut its outlook for the 2008/09 Argentine soy harvest to 39.4 million tonnes from 41.2 million tonnes, as yields have been hurt by drought. See[ID:nN03507754]

However, weakness in Malaysian palm oil, which fell on profit-taking, weighed on the markets, analysts said.

At 1006 GMT, the benchmark June palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange was down 0.92 percent at 2,145 ringgit a tonne. The contract had earlier risen to a new high at 2,196 ringgit a tonne. ($1=50.1 rupees) (Reporting by Abhishek Shanker; Editing by Harish Nambiar)