What Are Nuclear Futures?
Investors looking for exposure to nuclear power have the option of investing in exchange-traded Uranium swap futures. Uranium futures are a hedging tool for producers and users of uranium. They also provide a transparent forward price mechanism for the volatile uranium marketplace. These financial instruments are very thinly-traded, so achieving exposure in this manner may be challenging.
Uranium futures trade on the NYMEX under the symbol UX, with each contract representing 250 pounds of U308. These contracts are priced in dollars and center per pound, and trading is conducted in 60 consecutive months. The Floating Price for each contract month is the month-end spot U3O8 price published in Ux Weekly for the contract month by Ux Consulting Company, LLC. Uranium futures utilize financial settlement.