India soyoil up on firm spot; palm, CBOT weighs

MUMBAI, April 8 (Reuters) - Indian soyoil futures rose on Wednesday on firm spot demand triggered by expectations of a supply squeeze, but weakness in rival palm oil in Malaysia and fall in soyoil market on Chicago Board of Trade (CBOT) weighed.

At 2:26 p.m., (0856 GMT), the April contract NSOJ9 was up 0.71 percent at 469.85 rupees ($9.3) per 10 kg on the National Commodity and Derivatives Exchange.

The May contract NSOK9 edged up 0.19 percent to 469.9 rupees.

The global supply may fall on expectations of weak soybean supplies and lower palm oil stocks in major producing countries, analysts said.

Soy crop in Argentina, the world's third largest soybean exporter, is seen below previous estimates, while stocks of Malaysian palm oil, a soyoil substitute, may fall by 12.8 percent to a 20-month low, a Reuters poll showed on Wednesday. See[ID:nKLR433268].

Palm oil futures in Bursa Malaysia Derivatives Exchange were slightly down tracking weak crude oil prices, but expectations of lower palm oil stocks in Malaysia at the end of March limited the losses.

At 0900 GMT, the benchmark June palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange was down 0.55 percent at 2,168 ringgit a tonne.

July soyoil prices BON9 on Chicago Board of Trade (CBOT) fell 0.57 percent to 34.92 cents per pound during electronic trade on Wednesday. ($1=50.4 rupees) (Reporting by Abhishek Shanker; Editing by Prem Udayabhanu)