KUALA LUMPUR, June 1: Malaysian crude palm futures closed 0.7 per cent lower on Friday after hitting a new high as players booked profit ahead of the weekend and prices of rival soyaoil declined.

The benchmark August contract a finished down 19 ringgit, or 0.7 per cent, at 2,562 ringgit ($754) a ton after touching a fresh high of 2,605 ringgit.

Market activity is purely speculative, players continue to test the 2,600 ringgit level before pocketing profits, said one trader. Soyaoil has weakened in Asian trading and this has some impact on the palm oil market.

Traders said nearby months would remain higher as concern of tight supplies at home and strong foreign demand continued to support the market.

Other traded months fell between 4 and 22 ringgit, in overall trade of 9,840 lots of 25 tons each.

Malaysian palm oil usually tracks the US soyaoil market because both commodities are used in products ranging from soap and fuel to chocolates.

Palm oil gained more than 28 per cent this year on dwindling supplies at home and robust demand from top importers India and China.—Reuters