This week we finally got to see some green over our screens, though it’s not the total P/L turning green … yet.
With news out of China that the country will soften its Covid policies by decreasing the time people need to spend in quarantine, and increasing the number of suitcases one can bring on an airplane, in combination with inflation numbers coming in lower than expected, the stock market got a fresh dose of hopium and closed the week largely in the green.
Most commodities also had a green week, with the largest moves to be observed in the industrial metals. I don’t trust this move yet, as there is no new demand that’s come to market, and I suspect this was just a hopium-driven rally, on the China + FED news.
- The top 3 best-performing commodities this week were:
- Nickel : +13.5%
- Tin: +13%
- Palladium: +10%
- The top 3 worst-performing commodities this week were:
- Coal: -9%
- Nat gas: -8%
- Orange juice: -10%
What is this week’s show about?
- Cameco announced at the beginning of the week that the McArthur River Mine + Key Lake Mill combo has managed to produce its first pounds of uranium after the nine-month restart of the mine. Energy Fuels said that it will be getting into production “very soon”, and Global Atomic started constructing its undeground mine in Africa. Those are all signs of serious companies getting ready to go into production, but not yet jumping on the gas pedal.
- Bulgaria announced that it will be looking to diversify away from Russia as its primary source of nucear fuel, clearly expressing the bifurcation of the uranium market. Romania, another European country, announced that it has gotten a $3B-loan from the US to finish the build-out of its two new nuclear reactors. Meanwhile, Westinghouse, Cameco’s nuclear fuel arm, already has deals in place in Poland, The Chezh Republic, and The Ukraine, once again vivivdly showcasting the bifurcation of the nuclear fuel market. Only Cameco has, so far, managed to sign contracts beyond the curtain of the East, and announced this week that it has signed uranium delivery contract with CNNC (Chinese National Nuclear Corporation) earlier this year.
- While orange juice and oat are sliding, US eggs kept going up and closed the week 7% in the green, as a result of extreme drought and one of the worst chicken virus outbreaks in a while. Meanwhile, France, Europe’s second-largest poultry producer, announced that it has raised its chicken virus risk to “high” from “moderate”, and it ordered its farmers to keep their chickens inside as wild birds defecate on their food and make them sick. Winter is generally not a good period for Chickens, as they don’t like laying eggs in that period, which means egg prices will likely keep climbing for the foreseable future.
- I spoke to Steve Penny, aka Silver Chartist, to figure out whether we’ve already seen the bottom in gold, silver, platinum, and uranium. We also talked about which equities might be the best way to play the current volatile situation.
- I spoke to Andreas from the Shovel Stocks YouTube channel about his portfolio, which is split between biotech, uranium, battery metals, and a few other sectors.
What to watch next week?
Next week won’t be a calm week, but I expect it to be less volatile than the previous week.
Some important economic data will be coming in from China on Tuesday morning / Monday night, as well as CPI & GDP numbers from the EU, in combination with building permits, and consumer inflation expectation from the US.
Antonio Atanasov is not an investment advisor. Antonio Atanasov might own shares of companies mentioned in this publication. Companies mentioned in this video might be paying customers of Resource Talks. Always assume the speakers biased.
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