China will need to sign more potash contracts very soon...

China will need to sign more potash contracts very soon IMO.

Source: http://www.aireview.com.au/index.php?act=view&catid=8&id=12470

"The drought in northern China is now the worst in 60 years and this week forced the central government into boosting grain prices (for wheat, rice etc) by almost 22% to try to keep a lid on price pressures."
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"World wheat prices are climbing on the worsening drought, which has added to the price push from the wet weather in Australia and the bad drought in Russia and other Eastern European producers."
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"The drought is the worst in six decades in many areas, and has left a swathe of grain-producing regions reeling from a lack of any significant rainfall in more than three months."
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"The State Council also decided to pay crop-growers higher prices for their produce to offset lower yields in drought-hit areas."
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According to news reports China's State Council warned the situation could worsen, saying rainfall across northern China for the foreseeable future would remain "persistently below normal levels and major rivers will continue to be generally dry."
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"A statement on the National Development and Reform Commission (NDRC)website said the government would continue the policy of minimum purchase prices in major rice-growing regions in 2011."
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"China's State Council had said on Wednesday that the country had to boost grain production as drought continues to wreak havoc in north China's wheat growing regions. China's main wheat-growing regions, including Shandong, Henan, Hebei, Anhui, Shanxi, Shaanxi, Gansu and Jiangsu provinces, have been plagued by drought since October last year."
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"The ongoing drought is potentially a very serious problem," the agency said.

"The situation in the regions could become critical if temperatures dropped further this month and a spring drought followed the winter one," the FAO said.