FX.co ★ Uranium Rises to 10-Month High

In September, uranium futures in the United States climbed to over $80 per pound, marking the highest level in ten months. This increase comes amid renewed interest from physical uranium funds and strategic investments in nuclear fuel. Notably, Yellow Cake, a physical uranium fund, secured $125 million for uranium acquisitions, mirroring similar strategies from major player Sprott, which sparked a spike in uranium prices in June. This activity followed an announcement by the US government regarding plans to enhance its strategic uranium reserve, aiming to mitigate potential supply disruptions due to increasing import restrictions from Russia. Concurrently, the World Nuclear Association projected a 28% rise in uranium demand for nuclear power by 2030. This underscores the governmental shift towards nuclear energy to achieve energy security goals and meet the rising demand from data centers by software companies. On the supply side, Cameco, a Canadian company, lowered its annual production targets owing to delays in expanding its McArthur mine in Saskatchewan, while Kazatomprom announced a 10% reduction in its output for the next year.