I think uranium positioning is rinsed well enough here, at least for now. Spot is currently ~$88 vs the Feb 1st peak at $107 and the March 13th low at $83.
The last Friday of each month is month-end for physical uranium term contract reference price resets. In countless instances over the past few years, sharp selloffs at month and quarter end have led observers to speculate that utility buyers would expend 100-200k lbs to knock spot down a few bucks and save a few million dollars on contract deliveries. There was a lot of market speculation Friday that on this particular month end, someone woke up to this game and counterbid for size, and nothing was filled because the offers are now inherently skittish. Rumors were that the buyer is a big player (please don’t ask — I have my suspicions only). Bottom line is there is enough blood in the water for either:
a quick retest of $100 or
the next slingshot higher
Either way I want to be long. But where to focus the trade? I already have my core long-term holding in SPUT (Sprott Physical Uranium Trust), which is 2% away from a NAV premium where they can issue shares via their ATM offering to buy pounds, thus compounding a run in spot…but is this the torque I want?