By Leia Michele Toovey- Exclusive toPotash Investing News Potash stocks have been slowly creeping upwards, in unison with big jumps in grain prices this summer, particularly for wheat. While higher grain prices are a positive for potash producer shares, the overall near term outlook for the sector is bleak; at least according to Goldman Sachs. According to the investment and securities firm, the third quarter of 2010 will be the toughest times potash producers have faced in more than two years. Although some short term relief may be in store, it could take until 2013 until the sector witnesses any significant improvement. In the next quarter, potash prices will hit a two year, however, followed by some temporary relief in the fall as an early spring planting season translates into an early fall harvest, leaving an opportunity for fertilizer application prior to the winter season. After a potentially positive fall season, it will take until 2013 for the sector to gain any significant momentum. Beyond 2013, prices will likely be capped off by new projects set to come on-line. Two significant potash projects, BHP's (NYSE: BHP) Jansen Project in Canada, as well as a large project being developed in Saudi Arabia are currently in the developmental phase. Goldman also shared their expected price targets for the crop nutrient through the next few years. In 2010, they have potash sitting at $369, in 2011 $364, and in 2012 $365. In the short term, potash prices should recover from an average of $358 per tonne for the July-to-September period, the lowest since the first quarter of 2008, to $362 per tonne.