FX.co ★ Uranium Holds Near 7-Month High

Uranium futures in the United States were trading at $78 per pound, maintaining the majority of the momentum seen in late June when they hit a seven-month peak of $79. Market participants continue to evaluate the influence of heightened fund purchases on the bidding prices set by utilities. The Sprott Physical Uranium Trust recently announced plans to acquire approximately $200 million worth of physical uranium, doubling the previously indicated amount in its agreement with Canaccord Genuity. Sprott's uranium acquisitions, predominantly stored as yellowcake, have historically sparked price rallies due to the low trading volumes in uranium derivatives. This development follows a nearly 6% increase in yellowcake prices in May, driven by the US government's pledge to bolster domestic uranium enrichment capacity, streamline regulations and accelerate reactor licensing processes, and uphold trade restrictions on leading nuclear fuel exporters. Meanwhile, leading uranium producer Kazatomprom reported it would reach a production mid-point of 14 million pounds, almost 20% below its late 2023 forecast.