Ag Futures Consolidate Amid Mixed Economic and Weather Signals

Agricultural futures consolidated in early trading on Friday, with price swings this week being wide due to managed money liquidations that reduced the market's risk premium. Current US weather forecasts indicate above-normal temperatures over the next week with scattered rains, but soil moisture is being lost at an elevated rate. The May jobs report showed 90,000 more jobs added than expected, although the unemployment rate remains at 4.3%, with many of these positions being rehires. Hourly wages also fell short of expectations. In commodity news, the Philippines booked a purchase of 190,000 metric tons of soy meal. The central US weather pattern is projected to remain consistent with near-normal rain across the Eastern Plains, Midwest, Delta, and Canadian Prairies over the next 10 days, with rainfall this weekend favoring AR, TN, IA, MO, and IL. Additionally, the discovery of New World Screwworm in Texas has halted feed imports from Mexico, with strict monitoring continuing.