Last year’s volatility in the corn market could repeat itself this year, but for a different reason. Seed corn, which is grown from specialized plants, is in short supply due to dry conditions in the Midwest and West last summer. Seed suppliers like Monsanto Co. (NYSE: MON) and E.I du Pont de Nemours and Co. (NYSE: DD), as well as food processors such as General Mills Inc. (NYSE: GIS), Kellogg Co. (NYSE: K), and Kraft Foods Inc. (NYSE: KFT) could all feel the pinch, if for different reasons.

The Wall Street Journal cites a trader who says:

Corn prices slumped in the second half as the fall harvest replenished supplies. But in the past three weeks, corn futures prices have been on the rise, jumping 14% in the past three weeks. While much of that has been on the back of fears of lower-than-expected production in South America because of drought, the prospect of falling corn seed could propel prices even further.

Corn prices, currently around $6.50/bushel, could rise as high as $10/bushel if the seed is indeed in short supply.