Let The Speculation Begin?; New York Merchantile Exchange (NYMEX) Announces New Uranium Futures Contract

17 de abril de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Let The Speculation Begin?; New York Merchantile Exchange (NYMEX) Announces New Uranium Futures Contract</h1><p>Apr 17 (EIRNS)--The NYMEX announced April 16 that it will introduce, beginning May 6, a cash-settled uranium futures contract that would be traded on its electronic platform (the CME Globex and NYMEX Clear Port). The <em>International Herald Tribune</em> reported April 16 that such a contract, "would provide [speculators] a forum to bet directly on gains and falls in the price of uranium, rather than speculating on the fortunes of miners," i.e., mining companies. Hedge funds could buy and sell uranium yellowcake contracts, without ever having to provide or take physical delivery of the ore.</p><p>Numerous reports indicate that during the past year, hedge funds have been significant speculative buyers of physical uranium on the physical "spot" market. As a result, by Monday April 16 morning, the price of uranium had been bid up to $113 per pound, with a record $18 per pound increase alone during the previous week, and an approximate tripling of its price since Spring 2006.</p><p>With Russia, China, and several Asian nation planning ambitious programs of nuclear power plant construction in the immediate future, the speculative bidding up of uranium prices would have a negative effect on such plans.</p></div></body>