Uranium Spot Price Rises to All-Time Record in Advance of NYMEX Futures Trading Startup Today
VANCOUVER, BC -- (MARKET WIRE) -- May 07, 2007 -- U3O8.biz -- TradeTech has increased U3O8 spot prices to an all-time record of US$120 per pound in advance of today's startup of on and off-exchange traded uranium futures on the New York Mercantile Exchange, Inc., a division of NYMEX Holdings, Inc. (NYSE: NMX).
The futures contracts will provide nuclear power plants with a vehicle to hedge against rising prices that have surged more than tenfold in the past four years as commercial stockpiles dwindle and more plants are built. It would also provide a forum for investors to bet directly on gains and falls in the price of uranium.
The new NYMEX futures market will involve financially settled contracts that are separate from the physical uranium market. Traders won't take possession of the commodity, but they can take title of it and receive exposure to its price.
"We are excited to introduce uranium futures contracts and to provide the industry with a transparent price discovery mechanism. We expect to create a benchmark contract for this important and underserved global market," says Richard Schaeffer NYMEX Chairman.
"The experience this decade has clearly indicated that the uranium market would benefit from additional price transparency, especially in terms of forward prices, as market participants formulate budget and investment decisions in this critical period of a renaissance in nuclear power," says UxC President Jeff Combs.
Important facts for NYMEX futures trading:
-- NYMEX UxC Uranium U3O8 futures will be launched at 6:00 pm May 6, 2007 (Sunday) for the trade date of May 7, 2007 (Monday).
-- Contract symbol will be UX; Minimum contract size is 250 pounds of uranium U3O8 (currently spot price: $120/lb.); Minimum tick size is $0.05.
-- It will be a financially settled contract with each month settling on the corresponding spot month-end U3O8 price published by The Ux Consulting Company.
-- Trading hours are 6:00 PM through 5:15 PM, New York time, Sunday thru Friday, with a 45 minute break each day between 5:15 PM and 6:00 PM; Initially, 36 consecutive months will be listed. The first listed month will be June 2007.
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