FX.co ★ Uranium Falls from 1-Month High

Uranium futures have stabilized at $78 per pound, retreating from the recent peak of $82.5 observed on October 31st. This decline is attributed to improved supply expectations, overshadowing speculative forecasts regarding nuclear power's future role. Kazatomprom, the leading uranium producer, reported a 33% surge in exports during the third quarter, alongside a 10% increase in overall production. These figures have alleviated concerns about potential supply constraints, especially following previous guidance forecasting a 10% production reduction by 2026. Although Cameco provided a lower production outlook for this year, they emphasized their capacity to ramp up output to offset any deficiencies if necessary. These industry movements have moderated the earlier rally in uranium futures, which had peaked at a 14-month high of $84, driven by strong demand. In the United States, new agreements for constructing power plants have been announced, alongside regulatory relaxations for building and permitting uranium conversion and enrichment facilities. This strategic shift is supported by Cameco's partnership with the U.S. government, which has green-lighted the development of Westinghouse reactors.