Spot Uranium Price Creeps Up to $61/Pound as Buyers Begin to Worry About Supply
TradeTech published the weekly spot uranium price indicator of $61/pound, for the week ending November 10th in Friday’s edition of “Nuclear Market Review.” It is posted on the Trade Tech website. But, judging from the number of utilities seeking U3O8 equivalent, it is unlikely spot price increases will stall or stabilize at this level. Nor will the price likely increase by tiny increments between now and year end. By next weekend or the following, we could very well be looking at the ten-percent jump investors have been waiting for. “It’s a bit of a poker game at the moment,” Sprott Asset Management Market Strategist Kevin Bambrough told StockInterview. “Utilities are scrounging around looking for contracts in size rather than entering a thin spot market.” Bambrough believes the spot market won’t supply utilities with the pounds they required, unless there is “a substantial rise in price.” According to Gene Clark, utilities are circling suppliers and especially those holding uranium. “Eight utilities and three intermediaries are chasing over five million pounds of U3O8 equivalent this week,” Clark told us. “Sellers who needed to fulfill their year end cash needs appear satisfied.” In addition to this spot demand, over twenty utilities are now hoping to obtain more than 55 million pounds of U3O8 for long-term delivery beginning as early as next year, according to Trade Tech. How much competition will utilities face from speculators? “The forces majeures may not have gone out yet, but those with Cameco’s Cigar Lake production contracts aren't likely to sit around and wait 3 months for the official notice,” Bambrough told us. “If they do, they’ll just get front-run by speculators.” What makes Bambrough conclude this? “I'm already hearing rumblings from many sources that another round of non-utility buying is entering the physical market now,” he responded. Above the heads of current utility buyers looms the likelihood of new competition entering the marketplace for the first time. Last week, the International Energy Agency (IEA) recommended governments build more nuclear plants to slow climate change and increase energy. According to the Financial Times, this is the first time the IEA in its 32-year history has recommended nuclear power as a solution. After releasing the IEA’s World Energy Outlook for 2006, the agency’s director told reporters, “On current trends we are on a course for an expensive and dirty energy system that will go from crisis to crisis which can cause more supply disruptions, meteorological disasters or both. That may mean skyrocketing prices and more frequent blackouts. This energy future is not only unsustainable, but it is doomed to failure.” We asked Strathmore Minerals’ president David Miller about the current uranium supply picture. “As the price continues to move up, those companies that have the advanced uranium properties, and have begun permitting for production and can begin in less than 6 years, will be the companies which tie into the record high uranium prices we will see over the next 24-36 months,” he said. What about the juniors exploring now? “Uranium exploration projects, are 15, 20, 25 years away from production, even if they successfully find an orebody,” he responded. Miller believes the spot uranium price will go a lot higher than $61/pound before the price settles into a stable range. One very near-term new uranium producer has recently been in the headlines. FNArena.com’s editor Rudi Filapek-Vandyck emailed us his thoughts from Australia, “Paladin is believed to be able to forward sell its product at US$10 premium to the spot price. It is believed the company has currently committed (forward sold) less than half of its anticipated production for next year.” He added, “Paladin will therefore be a major beneficiary of the current developments. Also note the rumours: Paladin is not planning to commit any more to forward sales at this stage. This probably signals the same as Cameco's presentation: uranium price is likely to rise further.” He concluded this looked like a ‘bullish outlook’ for the uranium price through the end of 2006. Concerns over energy security have become a global worry. At next weekend’s G-20 summit in Australia, this will be the primary theme for the conference. Central bankers and finance ministers from the world’s top economies will meet in Melbourne to discuss the energy supply and demand imbalance. “How does the world satisfy those economies that there will be continuity of supply at realistic prices, with no need to lock up supplies, without cartel activity which would rig those international markets?" Australian Treasurer Peter Costello told Australian television on Sunday. “If we can get an agreement on adequate supply, adequate security, proper international pricing, then I think we can actually ensure that what could otherwise become jostling and instability over resources over the next couple of decades will be taken out of the system.” Australia holds the world’s largest uranium reserves. Copyright © 2006 by StockInterview, Inc. ALL RIGHTS RESERVED.
Other Trading Tips Articles
Currency Trading Profits – A Simple System Making Millions! Here we will reveal a system for currency trading profits, which has a logic that is so simple, ANY trader will see why it works, and why it will continue to work, as well as how they could be making big currency trading profits too!If you use this system in currency trading, you will have the potential to catch EVERY major currency trend ...How to Achieve Currency Trading Success: Part 1 Currency trading success can be achieved by anyone, as everything about trading currencies can be specifically learned, by any trader wishing to put it in the time and effort to do so.Trading currencies successfully is a combination of two factors:Firstly, you need a successful trading method for long term currency trading success ...The Secret Art of Backtesting If you have not back tested your trading system, you might as well trade with your eyes close. In fact, whatever technical analysis criterion you use to trade with, be it moving averages, candle sticks, volatility breakouts, fibonacci retracements or any other trading system you have devised you're going to need to back tes ...5 Useful Tips For Your Success In Forex Trading 1. Implement a trading plan.A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized ...How To Stay In The Game There are many many times that we take a position, it moves higher and higher and then starts to pull down. Maybe it looses 30 cents one day, then 50 cents the next day. By the third day it's hovering at or even violating our stop. If we feel the pull down is of no fault of the company itself, we might let it fade the stop, or finally just fold ...Forex Trading Courses To put things simply, Foreign Exchange (FOREX) Trading is the buying and selling of international currencies. Just like any other work you engage in, you need to have a basic knowledge on what makes the industry work and how it works, in order to make decisive analysis and intelligent decisions on each transaction. If you do not have any idea on ...Trading Tips No 1: Learn How to Trade The Moment of Truth So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge. The other half is far more dauntin ...Buy Cheap Repo Homes From Government Auctions - 5 Tips Every now and then, national and local governments are sponsoring auctions and foreclosure for repossessed homes.It is to be noted that there are more and more people aiming to acquire repossessed homes from such trading activities. The tag prices of repo homes are not as cheap as they expect them to be.But all the more buying repo ...Best Brokerage Firms Based in Morris County, New Jersey, The Daily Record reviews the best brokerage firms around the brokerage world. It quotes Smart Money Magazine’s latest survey which placed Fidelity as “Premium Broker”, TradeKing as “Best Discount Broker”, and Merrill Lynch as “Best Full-Service Broker”.Yet, the Daily Record newsroom, headed by Warren Bo ...Top Ten Things to Do to Make your Signature File Sell Always include a powerful signature on every email you send out, even to friends. It's even more important when you send out articles to opt-in ezines (no spam) and top web sites in your field--more important than your article's message. This resource box contains your subtle sales message as well as giving people multiple ways to contact ...Benefits of Using a Stock Broker as a New Investor If you're new to the world of stock trading and investments, you probably realize that there is tremendous pressure in the financial world today. New investment opportunities are being discovered every day that can potentially bring wealth and prosperity to your portfolio. Also, online stock investing has opened the door wide for overseas stock ...E-gold Scams And How To Protect Yourself In the past one year e-currencies especially egold have become very popular in Nigeria. E-gold is an electronic currency backed by real gold stored up in a bullion somewhere in the United States and accounted for by weight. E-gold was established by Douglas Jackson in 1996.E-gold is used as a medium of exchange on the net. Many businesses ...How You Can Work at Home With Currency Trading and E-currency Exchange Program If you are reading this you probably are looking to work at home. Everyone now a day wants to work at home and spend more time doing the things they love the most. Ever dream of spending time with your loved ones, taking vacations to the islands, or buying that car you always wanted.90% of people that try to work at home FAIL. Why do they ...Online Forex Trading - Beginners Guide When it comes to forex trading, understanding the terminology and the forex trading strategies before you begin is vital. There are many web based companies that provide online forex trading tutorials that revolve around real time forex trading. Using a forex tutorial will give you the beginner knowledge you need to take part in trading forex. ...Online Brokerage The growing online brokerage industry has become the most fashionable way to purchase and sell stocks. This fueled the actions of the Securities and Exchange Commission (SEC) to allocate more of its time and resources in scrutinizing the investment products that the online brokerage industry provides. The SEC has made some mandatory requirements ...The One Hidden Mistake Most Investors Make Most investors concentrate the majority of their time and effort into researching and picking the right stocks or commodities to invest in. The assumption is that this is the only step required to achieve investment success. That just seems like common sense. There are other steps, however, which must be followed or your account will be decimate ...Trading Psychology: The Mindset Of A Losing Trader "The only place where success comes before work is in the dictionary." -Proverb-There are two types of men in this world. One that falls and one that stands up after he falls. In NLP or Neuro-Linguistic Programming, there is no such things as failure. A failure is simply classified as a feedback and every feedback is a lesson to help you ...Top 7 Advertising Tip Myths of Marketing Self-Proclaimed Experts Have you ever bought a book on business marketing to help you in your own business? Well many of us have and we have probably also bought tapes and other helpful materials to help us in our advertising. After reading hundreds and hundreds of marketing books over the 27-years in my business, it became rather obvious that much of what these market ...The Email Jungle - 10 Tactics To Help You Tame Your Email Problems Can’t cope with the e-mail overload? Having nightmares about e-mails stalking you through the corporate jungle? Waking in the middle of the night with the sweats because you accidentally sent that dirty joke to your boss instead of your work mate?Don’t despair! Here are 10 tips that will restore your sanity, improve your reput ...Understanding Stock Trading You have to understand stocks before you understand the stock market and stock investing. Basically, a stock represents the smallest share of company ownership. Companies issues stocks in order to get some additional capital and attract new investors that by buying stocks are actually buying a part of the company. This partial ownership, gives t ...Technical Futures Trading Futures trading are trading for a commodity that is delivered in the future. The price for this commodity is decided in the present. While deciding the price both seller and buyer fix the cost on certain analysis. Pricing is done on the basis of analysis of two aspects. They are fundamental analysis and technical analysis. The fundamental analys ...Improve Your Safety Metrics Without Making Your Workplace Safer - 7 Tips So many people are concerned with lowering their TCIR number or simply meeting their safety goals that they loose sight of the issue of actually making the workplace safer. I have even seen this attitude expressed through some safety governing bodies in my years working with safety.If you want to improve your safety numbers here are some ...Tips for Success in the World's First Sports Stock Market The AllSportsMarket is a financial exchange using a professional trading platform to buy and sell issues of sports teams. It is just like the stock market, but with sports teams! You compete with other players for real money. Money is earned from the ups and downs of the prices of teams and from dividends paid when teams win. The AllSportsMa ...7 Small Business Marketing Tips I’m not usually one to assume anything, but I’m going to assume you’re a small business owner who already knows the value of marketing to your success. So, I’m not going to waste one single word trying to convince you.And I’m going to make another assumption (two in one day is hard on the ol’ noggin, but here we go). That assumption is ...Options Trading - You Need To Know This About Trading Options What is options trading? Well quite simply, with options trading, the taker (or buyer) is buying a right to do something from the writer (or seller). There are different types of options trading, with stock options and commodity options being the most commonly used. Options trading can be used in any market where the prices of items fluctuate; t ...Profitable Currency Trading - No Previous Experience Necessary! Profitable currency trading is within everyone’s reach - but only a minority succeed.The reason for this is, most traders don’t treat it as a business, and don’t approach currency trading with a set plan.No Previous Experience Necessary!For profitable currency trading, treat it as a business with a set plan, and you will suc ...Commodity Trading Courses Many traders believe that, for those who wish to acquire or enhance their knowledge of day commodity trading skills, the best educational option is to attend a day trading course at an on-location site run by a reputable day trading firm. However, for many aspiring day traders, this option may not be feasible for a number of reasons. Another opt ...Why Do You Want to Become a Online Trader? Motivational guru Tony Robbins teaches that the reason for doing something rates much higher than the methods you use to get the job done. In order to make your goal REAL, you need to attach severe, horrifying, intense and profound fear to failure.Open up a notepad either on a desk or on your computer in a quite place and ...Planning a Single Parent Vacation With Your Kid More than most people, single parents need to look after their psychological and emotional well-being. Not only do the parents need it themselves, but more importantly, their children need it as well. A happy mom or dad makes a great parent. Similarly, a miserably busy dad or mom who can’t take care of his or her own personal emotional health wi ...
|
