Commodities fall as investors flee

— -- U.S. corn prices fell below $4 per bushel to a 10-month low Wednesday, while soybeans tumbled to a 131/2-month low as economic turmoil gripped all markets, causing investors to cash out their holdings amid fears of a worldwide recession.

Wheat and rice also were caught up in the selling frenzy, ending at 16- and eight-month lows, respectively, as stock markets and crude oil kept falling.

"We're following the financial markets," said Vic Lespinasse, an analyst for GrainAnalyst.com.

Wheat, corn, soy and rice prices slipped slightly in the overnight Asian electronic markets as global financial worries kept circulating.

Then each market plunged during the U.S. trading session Wednesday as Wall Street's Dow Jones industrial average collapsed more than 500 points by the time grain markets were closing at 2:15 p.m. ET. The Dow ultimately shed 733 points Wednesday.

Additionally, crude oil was down more than 5%, adding pressure to an already struggling grain and soybean futures market. Crude oil settled at $74.54 a barrel, its lowest closing price since summer 2007.

U.S. soy for November delivery ended down 38 cents per bushel at $8.58. December corn was down 23 cents to $3.88 a bushel, and December wheat was down 17 cents to $5.56 per bushel. Corn prices have dropped 49% since hitting an all-time high of $7.65 per bushel in June, while soybeans also lost 48% since peaking at $16.63 per bushel in July.

Seasonal pressure as the U.S. harvest gains speed may have put pressure on the corn and soybean markets, but the meltdown in the so-called outside markets, such as equities and financial markets, continued to dominate trade.

"The Dow sold off sharply. If it keeps breaking, we'll break, and if it recovers, we'll recover. Everything else is secondary right now," Lespinasse said.

Worldwide prices for stocks and commodities fell as fears of recession replaced euphoria about moves in the United States and Europe to invest in banks and defuse a global financial crisis.