India soyoil up on weak arrivals; palm oil weighs

MUMBAI, March 3 (Reuters) - Indian soyoil futures edged up on Tuesday on low arrivals in the spot market ahead of festivals this month, but weakness in Malaysian palm oil and a rise in supplies of rival rapeseed oil limited gains.

At 3:19 p.m. (0949 GMT), the March futures NSOH9 contract was up 0.7 percent at 446.8 rupees ($8.6) per 10 kg on the National Commodity and Derivatives Exchange.

The April contract NSOJ9 had risen 0.98 percent to 443.7 rupees.

Soyoil prices in the spot market in Indore, a hub for soyoil trade in India, was steady on limited selling at lower prices.

"Indian demand has improved and prices may remain slightly firm in the short term. But a rise in edible oil supplies in coming days may weigh on the markets," a trader in Indore said.

Rapeseed oil, which is produced from rapeseed, has started entering the local market and higher supplies are expected in the coming weeks following a sharp rise in oilseed supplies, traders in the western state of Rajasthan said.

Arrivals of rapeseed in Rajasthan, the largest producer, were steady at 300,000 bags of about 85 kg, sharply higher than arrivals in the same period last year.

Lower prices of rival palm oil overseas weighed on the market.

May palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange were down 0.48 percent to 1,862 ringgit a tonne at 0949 GMT.