Update for Eureka Ranchers, A Jump in Gold

Morning Miners! Morning Ranchers!

It is 6:07 AM and we have a full break room this morning. Lee sent us over some fresh coffee and donuts from Raine's this morning and the ole Colonel must admit that it tastes a lot better than what comes out of our boiler maker. She also informed me of two great links to add to the Report's Rancher's Corner:

Nevada Livestock Marketing, LLC

Superior Livestock Auction

The first provides full-service cattle sales & marketing serving the Fallon, Nevada and Outlying Areas; the second, a video auction service used by many Nevadans and similar to Western Video. For the ranchers and farmers that missed our kickoff in May, here's the link:

Checkout Our New Feature: "Rancher's Corner"

You can find the Rancher's Corner to your right. Thanks to Lee and all the other contributors that have made the Report better with their ideas and links. Keep'em coming!

This may prove to be an interesting day for the markets with the Federal Reserve statement expected at 2:15 AM (ET) concluding their two-day meeting. London spot gold is sensing something in the air jumping to $940 after traders returned from their pub lunch (London time). Other Fed-sensitive contracts demonstrated a slightly stronger U.S. dollar with respect to the euro and yen, and weaker compared to the Canadian loonie. All these trends could amplify or reverse depending on what Ben and the Boys have to say about inflation and the economic recovery this afternoon.

I'll close today with a currency chart missing from yesterday's discussion (Ask the Loonie Bird, Ask the Metals). Given the recent enthusiastic participation in our debt auctions, there is buzz about foreign investor sentiment: "Love the Treasurys, hate the dollar." Yesterday, we observed a weakening in commodity-sensitive currencies (loonie and aussie) and a mild recovery in the dollar. A reasonable question is why the dollar rally hasn't been stronger. The answer is that inflation fears in the U.S. are moving money into the euro (QEC U9) instead of our dollar (DX U9). Here's a chart of both for the last 3-months:


Oh-oh, a few ranchers just dozed off. Let's get them some more of that good Raine's coffee!

Enough talk, let's walk the walk:

Oil is down $0.26 to $68.98 in early trading (August contract); Gold is up $16.5 to $940.8 (August contract); Silver breaks $14 up $0.255 to $14.100 (July contract); Copper is up $0.0630 to $2.2615(July contract); Molybdenum is steady-eddy at $10.58.

The DOW is up 87.67points to 8410.58; the S&P 500, up 12.78 points to 907.88. The miners are rocking:

Barrick (ABX) $33.61 up 1.27%
Newmont (NEM) $41.82 up 1.21%
General Moly (Eureka Moly, LLC) (GMO) $2.32 up 5.45%
Freeport McMoran (FCX) $49.56 up 5.04% (a bellwether mining stock spanning gold, copper & molybdenum)

Steel stocks are snapping back (a "tell" for General Moly):

Nucor (NUE) $45.09 up 2.52% - domestic steel manufacturing
ArcelorMittal (MT) $33.31 up 4.26% - global steel producer
POSCO (PKX) $80.77 up 2.89%- South Korean integrated steel producer

The Eureka Miner's Grubstake Portfolio is rebounding nicely, up 3.05% to $999,562.52.

Cheers,

Colonel Possum

Checkout Our New Feature: "Rancher's Corner"

Morning Miners! Morning Ranchers!

It is 6:04 AM and life is good in the Great Basin! I hope you had a good Memorial Day weekend and it looks like we have some sunny weather ahead. I've invited a few ranchers to the coffee room this morning. Now don't y'all start fighting over water, there is plenty in the cooler by the coffee maker. In fact, mining, farming and ranching have existed in some form together since the Territorial days. F.D. Coburn, author of The Book of Alfalfa (1907), said in 1908:

"Gold could not always be found with pick and shovel, it could without fail be found by alfalfa roots."

Well pardners, since we've got plenty of gold, high-grade alfalfa and cattle in Eureka County, the ole Colonel thought it high time to include a "Rancher's Corner" in this market report. You'll find it to the right directly below the "Miner's Corner." Now, don't start fighting again, I couldn't figure out how to put them side-by-side!

Gary McCuing helped me put this together and I got a lot of support from Jake Tibbitts and Kathy Porter. It is a work in progress so let me know how it can be improved to get you the best market news on a daily basis.

The first three links take you to the Agricultural Marketing Service of the USDA. You'll find the latest news and Livestock & Grain Hay Reports for Northern Nevada there. The next are the Western Livestock Journal, Burely Livestock Report and Producers Livestock Marketing Association that provide livestock auction information from Shasta, California, to Jerome, Idaho. The Western Video Market gives you access to live video feeds.

Below the "Rancher's Corner" is a link to the local weather with National Weather Service maps and satellite imagery. The Report also has a "Discover Eureka" section and "Readers Tips - Hot Links." Let me know if you have some favorite links or upcoming news and the Colonel will post them.

Thank you ranchers for coming this morning and joining the Report!

OK folks, this is where we stop the talk and walk the walk:

Oil is down $1.65 in early trading at $60.02 (July contract). Gold takes a tumble, down $11.4 to $947.5 (June contract); Silver stays above $14 at $14.495; Copper is down 0.0275 to $2.0700 (July contract); Molybdenum holds at $10.25.

The DOW is up 144.48 points to 8421.80; the S&P 500, up 14.55 points to 901.55. The miners are mixed on an up day:

Barrick (ABX) $36.46 down 4.05%
Newmont (NEM) $45.62 down 3.02%
General Moly (Eureka Moly, LLC) (GMO) $1.75 up 1.16%
Freeport McMoran (FCX) $48.86 up 1.08% (a bellwether mining stock spanning gold, copper & molybdenum)

Steel stocks are so-so (a "tell" for General Moly):

Nucor (NUE) $40.79 up 1.75% - domestic steel manufacturing
ArcelorMittal (MT) $29.17 up 0.62% - global steel producer
POSCO (PKX) $77.61 down 2.99%- South Korean integrated steel producer

The Eureka Miner's Grubstake Portfolio is down 0.73%

Cheers,

Colonel Possum