FX.co ★ Uranium Rises Toward 14-Month High

Uranium futures surged beyond $81 per tonne in late October, nearing the 15-month high of $83.5 achieved last month, fueled by anticipated increased demand for nuclear power. This move came on the heels of the U.S. Presidential administration's announcement of an $80 billion agreement with Canadian firm Westinghouse Electric for the development of nuclear reactors. This deal is consistent with previous U.S. government initiatives aimed at boosting the sector, including policies to enhance enrichment capacity and expedite the licensing process for reactor construction. Additionally, the government has bolstered its strategic uranium reserves while imposing tighter import restrictions on Russian nuclear energy, which previously accounted for about 50% of enrichment capacity before Western sanctions were imposed in 2022. On the supply side, Canada's Cameco revised its annual production forecast downward due to delays in expanding its McArthur mine in Saskatchewan, predicting a 19% decrease in output from this vital source. Similarly, leading global producer Kazatomprom is set to reduce its production by 10% in the upcoming year.