The 10th Derivative Trade

So, Dean Foods today lowered numbers because the raw price of milk is up 66% this year or so. Why? Because the dairy herd is low. Why? Because farmers are sending more cows to slaughter than for milk. Why? Because the price of corn is too high and it is too expensive to feed live cows. Why? Because more corn is being used for ethanol and the price of corn has skyrocketed. So, who is a huge consumer of milk? Starbucks.

So if you would have read the Green Issue of Vanity Fair last year and shorted Starbucks you would have been smart. All that’s left is the 10th derivative trade.