FX.co ★ Uranium Pulls Back from 7-Month High

Uranium futures in the United States have declined to $74.50 per pound, a decrease from the seven-month high of $79 reached on June 27th. This drop occurred as the lack of new buying activity from holding funds gave utilities the opportunity to submit lower bids. Previously, yellowcake prices surged after the Sprott Physical Uranium Trust announced plans to purchase $200 million worth of uranium, double the amount outlined in its agreement with Canaccord Genuity. Historically, acquisitions by Sprott have often sparked rallies due to the limited trading in uranium derivatives. This price movement came on the heels of a price increase in May, when the US government announced initiatives to bolster domestic uranium enrichment capabilities, reduce regulatory burdens, expedite reactor licensing, and maintain trade restrictions on leading nuclear fuel exporters. Meanwhile, leading miner Kazatomprom reported it would achieve a mid-point production target of 14 million pounds, which is almost 20% below its 2023 end-of-year forecast. Additionally, French company Orano indicated it might shut down its SOMAIR mine in Niger due to domestic export constraints.