Uranium declined on Tuesday following an increase in production from Australia and Kazakhstan, two of the world's largest producers.

Uranium for immediate delivery settled at $78 a pound after trading at $84 last week and reaching a record high of $136 in June last year.

According to the Australian Uranium Association, Australia increased uranium production by 13 percent to 10,145 metric tons last year, and Kazakhstan produced 6,637 tons, but it plans to increase production by 45 percent this year.

Last week, the supply for immediate delivery was 2.1 million pounds while demand was 500,000 pounds, according to TradeTech LLC.

Speculation that Russia will this week sign an agreement to start uranium shipments to the U.S. from 2011 pushed further the prices down.