Corn Oil Production in US affected by Mexican Production?

[Iphone]

Some one make sense of this article for me. i am just confused.

Are Mexican Tortilla Prices Affected by U.S. Yellow Corn Prices? In recent months, numerous media reports have suggested higher yellow corn prices and increased ethanol production in the United States are driving tortilla prices higher in Mexico. It’s easy to see how an isolated view of the circumstances might lead to the conclusion thatU.S. yellow corn prices and Mexican tortilla prices are fundamentally linked. However, a broader view of the situation reveals numerous other political and market nuances are atplay. A longstanding statistics maxim suggests “correlation does not imply causation.” In thiscase, while the timing of the increases in U.S. yellow corn prices and Mexican tortilla prices appear well correlated, higher U.S. corn prices should not be interpreted as the sole cause of inflation in Mexican tortilla prices. A truly holistic approach to the issue demands consideration of several important facts, most of which have not been reported in media coverage of this situation. Mexican tortillas are principally made from Mexican-raised white corn. White corn typically accounts for less than 1 percent of corn production in the United States, with yellow cornconstituting the bulk of U.S. production. In 2005, U.S. corn producers planted approximately 700,000 acres to white corn, equating to less than 1 percent of the 81.8 million corn acres.The United States is the world’s largest yellow corn producer, but typically produces lessthan 5 percent of the world supply of white corn. The United States exports approximately 25-30 percent of its white corn to countries in Africa, Asia, and South and Central America. U.S. white corn exports have often helped offset shortages in those markets. White corn for direct human consumption is the primary variety grown in Mexico. White corndominates production in Mexico. The country typically plants 19-22 million acres to cornannually, the overwhelming majority of which is white corn. White corn is used in tortillaproduction because its soft starch is easily ground into meal. The processing of tortillas isfragmented and dispersed around Mexico, with 45,000 tortilla producers and 10,000 cornmillers.Ethanol is made from yellow corn—not white corn. Though uncommon, there is some substitutability between yellow and white corn in food and feed markets. Food-grade yellow corn is used to make corn flakes, chips, beer, and other foods, and white corn can be used as animal feed. However, the U.S. ethanol industry uses only yellow corn for biofuelsproduction. The United States exports very little white corn to Mexico because of existing over-quota import tariffs. Because of trade policies that discourage Mexican importation of significantvolumes of white corn, the country’s tortilla producers cannot rely on white corn imports tooffset domestic shortages caused by drought. The United States exports a significantamount of yellow corn to Mexico for use in the country’s feed and industrial processing markets, but white corn constituted just 2 percent of total U.S. corn exports to Mexico in2006. The North American Free Trade Agreement (NAFTA) established quotas on the amountof white corn that can be imported by Mexico. In the last three years, over-quota white cornimports have been subject to steep import tariff rates (72.6 percent in 2004, 54.5 percent in2005, and 36.3 percent in 2006). According to the USDA Foreign Agricultural Service, the over-quota import tariff “will apply to white corn, even in the case of a shortage.” In responseto banned domestic supplies of white corn, Mexico President Felipe Calderon in January raisedthe quota for white corn imports. Since the over-quota tariff specified by NAFTA is graduallydeclining to zero, trade may increase markedly once this tariff falls to a level sufficient to make over-quota tariff economical.

What?!

Summarize for me please.