Soyoil futures steady on biofuel hopes

MUMBAI (Reuters) - Indian soyoil futures were little changed on Thursday as the pressure of new crop arrivals was set off by expectations of a pick up in demand for biofuel as crude oil prices hovered near record highs.

At 1:32 p.m. IST, the November futures contract on the National Commodity and Derivatives Exchange was up 0.01 percent at 485.40 rupees ($12.3) per 10 kg.

The December contract fell 0.05 percent to 488.40 rupees.

Arrivals of new soybean crop in central state of Madhya Pradesh and western Maharashtra crossed 1.2 million bags, each of about 100 kg, on Thursday, sharply up from last week's daily average of about 550,000 bags.

The arrivals have peaked and will put pressure on the prices, but firm crude oil is supporting the market, Ravi Bhushan, an analyst with ICICI Direct, said.

As oil hovered near $88 a barrel, more soyoil could be diverted for use as biofuel, traders said.

The benchmark January palm oil futures on the Bursa Malaysia Derivatives Exchange was flat at 2,714 ringgit ($798.2).

Palm oil and soyoil are related commodities with similar markets and their prices often move in tandem.