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Chinese pecan buyers are accumulating supplies as they prepare for the next Chinese New Year in early 2011, a peak nut consumption period in China. Rising incomes and increased demand for healthy foods are driving higher tree nut purchases in China. Pecan farmers in the US are benefiting from skyrocketing pecan exports to China in recent years. Exports grew from less than 5,455 tonnes in 2006 to 40,273 tonnes in 2009 (Exhibit 1). Based on conversations with growers, we believe U.S. exports of whole, in-shell pecans to China could exceed 54,000 tonnes in 2010. Pecans are supply constrained because a tree requires up to 10 years before it bears commercial nut quantities. The supply-side crunch will force growers into a balancing act as they work to maintain price competitiveness in…