KUALA LUMPUR, Dec 29: Malaysian palm oil futures closed lower on Friday, as players took profit ahead of a long weekend and after a strong rally that sent prices to eight-year highs.

The benchmark third-month March contract on the Bursa Malaysia Derivatives exchange finished down 37 ringgit at 1,995 ringgit ($566) a ton after trading as high as 2,040 ringgit.

Prices had risen sharply this week and it is time to take profit before the long weekend, said one dealer.

The market will reopen on Wednesday, Jan. 3 after the Muslim Eid al-Adha and the New Year holidays.

Malaysian palm oil futures rose as much as 8.5 percent this week before succumbing to profit-taking, because torrential rains and floods in several parts of the country raised concerns over supply.

Other traded contracts ended down between 12 and 44 ringgit.

Overall volume stood at 9,623 lots of 25 tons each.

State-run Malaysian Palm Oil Board is due to release December palm oil production, exports and closing stocks data on Jan. 10.

In the physical palm oil market, the January shipment was quoted at 1,990/2,000 ringgit a ton and trades were done between 2,000 and 2,010 ringgit.

—Reuters