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India oilseeds, soyoil drop on global cues, rupee rebound

MUMBAI, Sept 4 (Reuters) - Indian oilseeds and soyoil futures fell on Wednesday due to a recovery in the rupee, drop in overseas oilseeds prices and on favourable local weather conditions.

* U.S. soybeans fell nearly 1 percent on Wednesday, losing half of the gains from the previous session, as traders took profits after a U.S. Department of Agriculture report showed crop damage was no worse than expected.

* "Local market is beaten-down by strong rupee and losses in the U.S. market," said Faiyaz Hudani, a senior research analyst at Kotak Commodity Services Ltd.

* "Domestic fundamentals are slowly becoming bearish as weather has improved in soybean growing areas and supplies from the new season crop should start in next 15 days," Hudani said.

* At 0829 GMT, the key October soybean contract was down 0.11 percent at 3,560 rupees per 100 kg on the National Commodity and Derivatives Exchange.

* As of Aug. 29, soybean was cultivated in 12.18 million hectares in India compared with 10.68 million hectares a year earlier, farm ministry data showed last week.

* The key October soyoil contract fell 1.48 percent to 691.60 rupees per 10 kg, while the rapeseed contract for October dropped 1.36 percent to 3,639 rupees per 100 kg.

* A strong rupee makes edible oil imports cheaper, but trims returns of oilmeal exporters. The Indian rupee staged a sharp recovery on Wednesday after suspected heavy dollar selling by the central bank.

* At the Indore spot market in Madhya Pradesh, soyoil was up 3.80 rupees at 702.95 rupees per 10 kg, while soybeans eased 3 rupees to 3,543 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed jumped 37 rupees to 3,718 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 week. (Reporting by Rajendra Jadhav; Editing by Anand Basu)