India oilseeds, soyoil drop on soybean supplies, strong rupee

(Repeats to wider audience without changes to text)

MUMBAI, Sept 10 (Reuters) - Indian oilseeds and soyoil futures fell on Tuesday on rising soybean supplies in local spot markets, a drop in edible oil prices overseas and a strong rupee.

* U.S. soybeans fell on Tuesday, extending their losses this week to more than 1.5 percent, as traders squared positions ahead of the next U.S. Department of Agriculture production forecast, while Malaysian palm oil futures fell to the lowest in more than two weeks.

* "Soybean supplies are rising in the local spot market. In the next fortnight there would be a significant rise in supplies," said Prasoon Mathur, a senior analyst with New Delhi-based brokerage Religare Commodities.

"The strong rupee and a drop in overseas market are also depressing sentiment."

* At 0817 GMT, the key October soybean contract was down 1.56 percent at 3,418.50 rupees per 100 kg on the National Commodity and Derivatives Exchange.

* The key October soyoil contract fell 1.61 percent to 664.80 rupees per 10 kg, while the rapeseed contract for October dropped 1.54 percent to 3,517 rupees per 100 kg.

* A strong rupee makes edible oil imports cheaper, but trims returns of oilmeal exporters. The Indian rupee rose to a two-week high as expectations of a narrower trade deficit and receding concerns about Syria helped the currency continue its recent recovery from record lows hit last month.

* At the Indore spot market in Madhya Pradesh, soyoil was down 10.65 rupees at 683.05 rupees per 10 kg, while soybeans dropped 51 rupees to 3,526 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed fell 43 rupees to 3,616 rupees.

* India has sold 350,000 tonnes to 400,000 tonnes of new-crop soymeal for shipment between October and December on prospects of higher soybean production and a weak rupee, an industry official said last month.

* India's soymeal exports in August rose about three quarters from a month earlier as a weak rupee made shipments more competitive and demand from Europe picked up. (Reporting by Rajendra Jadhav; Editing by Jijo Jacob)