• CME Group is preparing to introduce a physically settled uranium futures contract, according to people familiar with the matter.
  • The contract is expected to launch in the coming months, aiming to attract hedgers and speculators in the nuclear fuel market.
  • The move comes amid rising uranium prices and renewed interest in nuclear energy as a low-carbon power source.

CME Group Inc. is developing a new physically delivered uranium futures contract, according to three people with knowledge of the plans, a move that could provide a key hedging tool for an industry grappling with volatile prices and supply uncertainties.

The exchange operator is targeting a launch within the next few months, the sources said, asking not to be identified because the details aren’t yet public. A CME Group spokesperson declined to comment.

Uranium prices have surged over the past year, with the spot price for U3O8 recently trading around $80 per pound, up from below $50 a year ago, according to data from UxC LLC. The rally has been fueled by growing demand for nuclear power as countries seek to reduce carbon emissions and bolster energy security, alongside supply constraints from key producers.

“A physically settled contract would be a game-changer,” said one uranium trader who has been consulted by CME. “It gives participants confidence that the price reflects actual market dynamics, not just financial speculation.” The trader added that there’s strong demand from utilities and miners for a transparent, exchange-traded benchmark.

CME’s entry into the uranium market would follow a previous attempt by NYMEX, which launched a futures contract in 2007 but shuttered it years later due to low liquidity. The new contract would differ by requiring physical delivery of uranium, rather than cash settlement, aligning it with CME’s existing commodity contracts like gold and copper.

The contract is expected to be denominated in U.S. dollars and represent delivery of 250 pounds of uranium oxide (U3O8) at licensed conversion facilities, according to one of the sources. CME is also considering listing options on the contract.

The development comes as nuclear power enjoys a renaissance, with governments in the U.S., Europe, and Asia supporting new reactor builds and extensions of existing plants. The U.S. Department of Energy has also pushed to revive domestic uranium conversion and enrichment capabilities.

“If CME can build liquidity, it will transform how the uranium market functions,” said a veteran nuclear fuel consultant. “It would allow miners to lock in prices, utilities to hedge fuel costs, and investors to gain exposure—all with effective oversight.”

Still, some caution that the market’s relatively small size—annual global demand is around 180 million pounds—and opacity could challenge the contract’s adoption. “Uranium is not as homogenous as oil or gold,” the consultant noted. “There are differences in enrichment levels and delivery logistics.”

This article updates with additional context on market conditions and contract details.

Correction: An earlier version of this story incorrectly stated the launch timeline. The contract is expected in months, not weeks.