U.S. Markets close in 2 hrs 6 mins

India oilseeds, soyoil steady; strong rupee weighs

MUMBAI, Sept 26 (Reuters) - Indian oilseeds and soyoil futures were steady on Thursday as a likely rise in demand for edible oils due to festivals offset a strong rupee and the drop in the overseas prices.

* Malaysian palm oil futures fell for a third straight session on Thursday to their lowest in a month-and-a-half, as concerns over surging Southeast Asian supply of the tropical oil kept investors on edge.

* U.S. soybeans fell for the first time in three sessions as traders banked profits.

* At 0806 GMT, the key October soybeans contract was 0.19 percent down at 3,451 rupees ($55.34) per 100 kg on the National Commodity and Derivatives Exchange.

* "The recovery in the rupee is weighing on sentiment. Market is also expecting a rise in soybean supplies from next week. Weather is largely dry in central India," said Faiyaz Hudani, a senior research analyst at Kotak Commodity Services Ltd.

* A strong rupee makes edible oil imports cheaper, but at the same time trims returns of oilmeal exporters.

* India could export as much as 5 million tonnes of soymeal in the year from Oct. 1, 2013, a rise of about 25 percent on the previous year, as Asia's top exporter of the animal feed finds strong demand from Iran and Thailand.

* The key October soyoil contract was 0.18 percent down at 666.50 rupees per 10 kg, while the rapeseed contract for October edged up 0.03 percent to 3,561 rupees per 100 kg.

* India will celebrate a few key festivals like Dussehra and Diwali in the next two months, when typically edible oil consumption rises.

* At the Indore spot market in Madhya Pradesh, soybeans rose 13 rupees to 3,486 rupees per 100 kg, while soyoil edged up 0.75 rupee to 672.70 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed rose 30 rupees to 3,650 rupees.

($1 = 62.3550 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Sunil Nair)