FX.co ★ Uranium Rises to Near 1-Year High

In September, uranium futures in the United States climbed to over $82 per pound, marking the highest level in almost a year. This increase was driven by renewed interest from physical uranium funds and speculative investments in nuclear fuel. Notably, Sprott has been actively purchasing yellowcake, bringing their total acquisitions for the third quarter to 2.3 million pounds. Simultaneously, the UK's Yellow Cake raised $125 million specifically for uranium acquisitions. Such purchases by these funds typically lead to price surges, given the limited nature of the uranium market. This rally followed the U.S. government's announcement to enhance its strategic uranium reserve, aiming to mitigate supply disruptions amid increasing import restrictions from Russia. Concurrently, the emphasis on energy security and de-carbonization objectives prompted the World Nuclear Association to project a 28% rise in uranium demand for nuclear power by 2030. From a supply perspective, Canada's Cameco has lowered its annual production forecast due to expansion delays at its McArthur mine in Saskatchewan, and Kazatomprom has announced a 10% reduction in next year's output.