KUALA LUMPUR: Malaysian palm oil futures slipped on Thursday, weighed down by the weakness in the Chicago soyoil contract, while firmer crude oil prices and a weaker ringgit capped losses.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 63 ringgit, or 1.5%, to 4,133 ringgit ($980.78) a metric ton in early trade.

The contract fell 1.14% in overnight trade, after jumping more than 4% on Wednesday. Soyoil prices on the Chicago Board of Trade fell 0.27%. 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 ticked higher in early trade as investors weighed the escalating conflict in the Middle East and the potential for disruption to crude flows against an amply-supplied global market. Brent crude futures for December were up 0.89% at $74.56 a barrel as of 0246 GMT.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, weakened 1.01% against the US 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.