Market IndicatorsTo me, it looks like the mr market is saying that Cameco’s production cuts arent enough. Futures and spot prices have gone up steadily since the announcement but U stocks continue to give up gains made from the retail trader frenzy last week. If we are going to see this market normalize, more production needs to come off the table. Traders aren’t convinced this rally is sustainable and they are right...
We need more cuts out of Kazakhstan so that the available U really dries up on the spot market. The effect of that coupled with Cameco buying spot U to sell into long term contracts will cause the real “normalization” we’ve all been waiting for. Spot will rise from of producer demand, utility demand and trader demand.