2 Coal ETFs Expected to See Upside

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Kevin Grewal submits: Over the last year, coal has been performing well as economies around the world continue to expand and demand for global energy continues to rise. As for the future of the commodity, both microeconomic and macroeconomic factors suggest that the commodity will likely remain hot. ChinaComplete Story »

Kevin Grewal submits: Despite holding firm for numerous months, uncertainty in global economic growth, resulting in spotty demand, is causing the price of steel to decline and will likely continue to provide negative price support for the commodity.

Guest post by Suresh Kumar, Assistant Secretary for Trade and Director General of the U.S. and Foreign Commercial Service.Today, I had the opportunity to travel to West Virginia to discuss progress on President Obama’s National Export Initiative (NEI) and the promotion of U.S. manufacturing exports. As many of you might know, the NEI, announced in 2010, aims to double U.S. exports by the end of 2014. I’m glad to report that the NEI is off to a good start. Exports last year comprised 12.5 percent of GDP, up from the 11.2 percent recorded in 2009.  In West Virginia, exports of merchandise grew 34 percent in 2010 -- double the national growth rate of 17 percent for goods and services. Thus far for 2011, the U.S. remains on pace to achieve the NEI goal. The NEI is critical because we need to get more U.S. companies to export so that we can bolster our economy and support new jobs here in America. Of America’s 30 million companies, less than 1 percent export, and of those that do, 58 percent only sell to one market. The NEI helps creates deep market linkages and connects innovation to the marketplace. It also works to inform U.S. companies of their export potential, and the U.S. Government and private sector services available to help them sell internationally.  Export Assistance at Work   The International Trade Administration’s U.S. Commercial Service (CS) of the U.S. Department of Commerce operates a global network of 108 U.S. offices and locations in more than 75 countries comprising more than 1,400 trade specialists that provides U.S. business comprehensive, soup to nuts service and programs West Virginia is an excellent example of how CS counseling and collaboration with businesses and state and local governments is resulting in many export sales for U.S. companies. Last year, CS offices in West Virginia offices recorded 53 export successes totaling more than $11 million.

Kevin Grewal submits: As emerging markets continue to grow at stellar rates and developed markets continue to rebuild their economies, the demand for coal is expected to increase providing positive price support for the Market Vectors Coal ETF (KOL) and the PowerShares Global Coal Portfolio ETF (PKOL).

From the

Kevin Grewal submits: Australia is currently witnessing the worst flooding that it has seen in over thirty years, causing many open pit coal mines and railway links to submerge having a major impact on coal supply.

Kevin Grewal submits: Coal is the second largest overall source of energy and has witnessed demand grow at rates higher than oil and natural gas over the past few years and is expected to continue to do so, paving the path to opportunity for the Market Vectors Coal ETF (KOL) and the PowerShares Global Coal Portfolio (