STORY: Food inflation is set to spill over into 2023

Drought, too much rain, war and energy costs look set to curb global farm production again next year.

Rice and wheat stores likely won't be replenished in the first half of 2023.

Edible oil supplies are down because of adverse weather in Latin America and Southeast Asia.

Why it matters

Food prices climbed to record peaks in 2022. Import costs rose to hover around a $2 trillion record high.

That hit millions of people worldwide, especially those already struggling with hunger and poverty.

Wheat jumped to an all-time high in March after Russia's invasion of key grain exporter Ukraine.

The same was true of palm oil – while corn and soybeans climbed to a decade high.

Most have since dropped back partially or fully.

What it means for 2023

Flooding in Australia and severe drought in Argentina will shrink key wheat harvests and availability in coming months.

And a lack of rainfall in the U.S. Plains could dent supplies for the second half of the year.

Rice prices are expected to remain high because of duties imposed by main exporter India.

The outlook for corn and soybean harvests in South America looks largely bright in early 2023.

U.S. domestic supplies of key crops are expected to remain snug, according to the Department of Agriculture.

Palm oil will take a hit from tropical storms across Southeast Asia, where high costs also cut the use of fertilizer.