Updates midday prices and adds trader's comments

KUALA LUMPUR, Oct 3 (Reuters) -Malaysian palm oil futures fell onThursday, as investors booked profits and a weakness in theChicago soyoil contract added to the decline.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange fell 38 ringgit, or 0.91%, to 4,158 ringgit ($987.18) a metric ton at the midday break.

The contract shed 1.14% in overnight trade, after jumping more than 4% on Wednesday.

Malaysian palm oil futures declined today due to profit taking activities after the recent gains yesterday, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

"The decline is also influenced by the overnight weakness in the Chicago soyoil market."

Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.14%.Dalian's vegetable oil markets were closed for China's Golden Week holiday.

Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.

Oil prices rose as chances of the widening Middle East conflict disrupting crude oil flows from the key exporting region overshadowed a stronger global supply outlook. O/R

Brent crude futures LCOc1 for December were up 1.12% at $74.73 a barrel as of 0450 GMT. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm's currency of trade, weakened 1.06%against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.

The European Commission said it would propose delaying the implementation of a law banning the import of commodities linked to deforestation by a year, following calls from industries and governments around the world.

Palm oil may retrace moderately to 4,120 ringgit per metric ton, before retesting resistance at 4,206 ringgit, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.2120 ringgit)

Reporting by Ashley Tang; Editing by Sumana Nandy

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E