FX.co ★ Uranium Hovers Near 1-Year High

Uranium futures in the United States recently traded at $82 per pound, marking a slight decline from the near yearly peak of $83.5 observed on September 25th. This fluctuation coincides with market speculation over whether increased interest from physical funds aligns with the anticipated demand for nuclear fuel. Notably, Sprott has continued its acquisition of yellowcake, culminating in a third-quarter purchase total of 2.3 million pounds. Additionally, the UK-based Yellow Cake successfully secured $125 million to invest in uranium. Transactions by these physical holding funds often provoke rallies in benchmark prices due to the thin nature of uranium markets. Simultaneously, the emphasis on energy security and de-carbonization objectives has prompted the World Nuclear Association to project a 28% increase in uranium demand for nuclear power by 2030. On the supply side, Canada's Cameco has revised its annual production estimates downwards due to expansion delays at its McArthur mine in Saskatchewan, anticipating a 19% reduction in output from this crucial site. Furthermore, the leading global producer, Kazatomprom, plans to reduce its production by 10% next year.