A surprise cut in interest rates by the Federal Reserve this morning is helping markets in the U.S. avoid a complete collapse in early trading this morning.
While grain futures opened sharply lower across the board, overnight lows had held after 30 minutes of trading in Chicago. Nearby corn was down around 10 cents a bushel; it finished the overnight session near limit down. March soybeans were around 30 cents lower, also paring losses in a heavy traded overnight session. Wheat was holding up the best, down only 10 cents or so on the nearby in Chicago.
The Federal Reserve cut interest rates by three-quarters of a point this morning before the open, giving in to a clamor from traders for action after financial markets around the world sold off sharply yesterday. Markets in the U.S. were officially closed, but stocks did trade electronically, with Dow futures falling to 11610; they were back flirting with the 12000 levels after the first 90 minutes of trading on Wall Street.