TSXV:AAA.P - Post by User
Comment by
katchumon Apr 28, 2011 3:39pm
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Post# 18502643
RE: potash prices to drop
RE: potash prices to dropAbsurd. Look at Yara International, they are producing at almost 100% capacity. Which means supply is limited. And everyone knows that potash prices are inelastic, there is so little supply that every increase in demand for food will skyrocket prices. China will be that demand as middle class will grow and meat will be eaten. 1 kg of meat is 10 kg of wheat. And everyone knows that wheat is the thing that will move potash prices the fastest as those two are heavily correlated. And Chinese food growth demand is at its lowest in years! Wait till they start consuming more. Also Chinese food supply is at its lowest in years! And we're not even speaking about Ben Bernanke.