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Another wild week in the spot uranium pricing market broke all historical records, no matter how it is calculated. On Thursday night, Nuclear Market Review’s (NMR) month-end report announced US$133/pound. (We posted this on the front page of StockInterview.com as ‘Breaking News’ Thursday night.) Ostensibly, this was the final price for U3O8 auctioned by Mestena Uranium LLC on Wednesday when the sealed envelopes were opened.

But on Friday night, Nuclear Market Review marked the weekly spot uranium price indicator higher – to US$138/pound. This represents an increase of more than 11.5 percent from the previous weekly spot price of US$122.

Losing bids at Mestena were given another chance at a second auction on Friday to win the material they failed to buy on Wednesday, according to Nuclear Market Review editor, Treva Klingbiel.

During a phone call Friday night, we caught TradeTech chief executive Gene Clark between flights (he was on his way to Athens, Greece to make his presentation at the World Nuclear Fuel Market conference). “We issued a conservative increase to US$138 because Friday’s bids have not yet been announced,” Clark told StockInterview.com. “Our sources provided us with guidance of $138, but we believe the final sale could reach well over US$140/pound.” Clark cautioned, “Each auction has taken the spot uranium price higher, and we anticipate this could again occur at the June 12th auction.”

What then happens after June 12th? That’s when yet another auction – the third in less than two weeks – plans to offer 125 thousand pounds of U3O8.

TradeTech increased the consulting service’s long-term U3O8 equivalent price indicator on Friday to US$95/pound. This has been the market’s only month-end long-term price indicator reported, which others tend to utilize or report as their own.

According to Treva Klingbiel, “Long-term demand remains strong with 14 utilities seeking offers totaling approximately 26 million pounds U3O8 equivalent for delivery in 2007 – 2018.”

We have also observed a stronger increase in the spot uranium trading volume, after a hesitant start in 2007. As a comparison, spot volume to date was at about the same level as 1997. Yet by the end of 1997, more spot uranium was sold than at any other time during the ten-year period 1996 to 2006.

Matthew Smith of TheInvestar.com reports uranium stocks are suffering from lower lows and lower highs. This is generally a bearish indicator, but Smith pointed out, “After each new low, we only dip down less than one percent.”

Smith reports that the market needs an uplifting trigger to turn stock prices around. He pointed to additional changes in the spot weekly uranium price and possible deal-making with Energy Metals (NYSE ARCA: EMU) for a possible acquisition of that company.

As we believe, more consolidation is expected in this junior uranium mining space. Any significant drop in the price of uranium mining stocks at this point – especially those expected to become producers before 2013 – could lead to announcements of acquisitions, business combinations or mergers.

Previous comments from the chief executives of Denison Mines (AMEX: DNN) and Uranium One (TSX: SXR) suggest they have been waiting for a better time to make acquisitions. As has been found with most investors, no one really enjoys over-paying for their purchases.