FX.co ★ Uranium Holds Most of June Rally

U.S. uranium futures recently stabilized at $77.5 per pound, maintaining most of the recent gains that peaked at $79 on June 27th, the highest in seven months. Market participants are evaluating the influence of fund investments on utility bidding. The Sprott Physical Uranium Trust announced plans to purchase approximately $200 million worth of physical uranium, doubling its originally communicated commitment with Canaccord Genuity. Historically, Sprott's acquisitions often trigger market rallies due to the limited trading of uranium derivatives. This move came after yellowcake prices surged in May, following the U.S. government's announcement of support for domestic uranium enrichment capabilities, easing regulations, speeding up reactor licensing, and preserving trade constraints on key nuclear fuel exporters. Meanwhile, leading producer Kazatomprom disclosed it expects to achieve a central production target of 14 million pounds, which is nearly 20% lower than its late 2023 forecast. Concurrently, French company Orano indicated it might shut down its SOMAIR mine in Niger as a result of local export restrictions.