transparent daily u3o8 prices and a barometer

Message also posted on Commodities - Uranium forum

I suggested the Bloomberg provide real daily uranium prices with the MF Global Uranium U308 Price www.bloomberg.com/apps/quote?ticker=MFURMDUR:IND and am happy to follow this

Ux Consulting?s Ux Weekly of September 7, 2009 ?Adding Transparency and Clarity to Uranium Prices? www.uxc.com/cover-stories/uxc_UxWContent.aspx?key=9786 indicates its daily price is ?based on bid and offer information supplied by three of the industry?s leading brokers ? ICAP, MF Global, and Tullett Prebon? (Tullett Prebon subsequently replaced by Evolution Markets). I have so far discovered that of these dealers the only one whose prices are published and transparent is MF Global

I find Bloomberg has another good input from MF Global www.bloomberg.com/apps/quote?ticker=MFURFIUP:IND The Fund Implied Uranium Price represents the inventory weighted average of the implied uranium price backed out of listed closed and physical uranium funds. This is used as a barometer of pricing sentiment on the underlying physical uranium price. Those holding U shares at the moment might be happy this indicator ticked up on Thursday and Friday.

My big botch-up was in believing NYMAX Futures may be a market since their charts so closely resemble those of MF Global. I have discovered NYMAX is very much a Mickey Mouse outfit in U3O8 terms with total Open Interest for the next two years 2,651,000lbs. (10,604 contracts) which is less than the 2,715,559lbs. Paladin had in inventory at the end of December. Even with no bids or offers the relevance of NYMAX daily settlement prices will be because of margin requirements on anyone with open positions - they have to adjust them in the best way they can with no liquidity and have to look at the real market for prices as each contract finally settles in cash against the month end Ux price.

TradeTech indicators remain a bit of a mystery to me and I?d appreciate if someone will fill me in on the source of the company?s Friday price which is made public on the following Tuesday.



I?ll not do any advertising for MF Global (not lightweights on Sydney Futures Exchange) but leave it up to investigative minds to research the Group.

http://www.mfglobal.com/commodities

Earlier this month MF Global was designated one of the 20 Primary Dealers by the Federal Reserve Bank of New York - I should not think it is because the Fed might still be suffering from an overhang of Lehman Bros. Uranium.

Cheers