FX.co ★ Uranium Surges 10% on Fund Buying

Uranium futures in the United States experienced a significant surge, climbing nearly 10% to surpass the $76 per barrel threshold on Monday. This rise followed the announcement by the Sprott Physical Uranium Trust of its plans to acquire approximately $200 million worth of physical uranium for a new fund. Sprott, the largest uranium fund globally, managed to raise twice the amount initially indicated in its underwritten agreement with Canaccord Genuity. Sprott's substantial uranium acquisitions, primarily held as yellowcake, often serve as catalysts for price rallies given the limited trading volume of uranium derivatives. This development comes on the heels of a nearly 6% increase in yellowcake prices in May, as the U.S. government announced measures to support domestic uranium enrichment, streamline regulations, accelerate reactor licensing, and uphold trade restrictions on major nuclear fuel exporters. Additionally, the demand has been bolstered by AI datacenters with significant power needs. Meanwhile, leading producer Kazatomprom revealed that its production would reach a mid-point of 14 million pounds, which is nearly 20% below its prior guidance from late 2023.