Updates midday prices and adds trader's comment

KUALA LUMPUR, Oct 30 (Reuters) -Malaysian palm oil futures fell on Wednesday, weighed down by profit-taking and concerns that a widening premium over rival oils could dampen demand.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange slid 31 ringgit, or 0.67%, to 4,606 ringgit ($1,049.44) a metric ton during the midday break. The market will be closed on Thursday for a holiday.

Crude palm oil futures prices demonstrated resilience in the previous session, however, a slight retracement is expected due to profit taking activities, said Darren Lim, a commodities strategist with Singapore-based brokerage firm Philip Nova.

The contract rose 2.38% on Tuesday.

"Optimism about an uptick in Chinese demand following details of a potential fresh stimulus package had supported speculative buying above the 4,600 ringgit level," he said.

"Traders will also be closely monitoring developments in related vegetable oils, as the widening premium will ultimately reduce demand for palm compared to its substitutes, keeping gains capped,” Lim added.

Dalian's most-active soyoil contract DBYcv1 fell 0.14%, while its palm oil contract DCPcv1 rose 0.28%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.07%.

Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.

The ringgit MYR=, palm's currency of trade, weakened 0.41% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Oil prices stabilised on industry data showing a surprise drop in U.S. crude and gasoline inventories, following two previous sessions of losses on the prospect of hostilities easing in the Middle East. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

European Union soybean imports so far in the 2024/25 season that started in July had reached 3.78 million metric tons by Oct. 25, up 1% from a year earlier, while palm oil imports were down 21% to 988,458 tons, data published by the European Commission showed.

($1 = 4.3890 ringgit)

Reporting by Ashley Tang; Editing by Subhranshu Sahu and Mrigank Dhaniwala

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