U.S. soybean, corn and wheat futures fell on Tuesday on continued speculation the U.S. economy will fall into recession, triggering a sell-offs in commodity and financial markets and lowering the demand for grains.

The early sell-off came after overseas financial markets plunged overnight, leaving the U.S. stock market affected. European stock markets suffered it biggest loss in over 6 years and in Paris, the CAC 40 index fell nearly 7 percent.

In a quick recovery move, the Federal Reserve cut its benchmark interest rate by 0.75 percent to 3.5 percent, the biggest cut in 23 years.

The rate cut did not prevent U.S commodities and equities from falling. Prior to today, wheat prices had doubled in the past year while corn and soybean futures reached records last week.

Soybean futures for March delivery fell 24.5 cents, or 1.9 percent, to $12.395 a bushel on the Chicago, Board of Trade, after suffering its first fall in seven weeks last week. Soybean hit a new record of $13.415 on January 14.

Corn futures for March delivery fell 9.25 cents, or 1.9 percent, to $4.89 a bushel in Chicago, making it the fifth-straight loss since hitting a new price record of $5.1925 on January 15. Corn gained 17 percent last year after increasing 81 percent in 2006. This was largely due to higher demands for corn in order to produce ethanol and feed livestock.

Wheat futures for March delivery fell 28.5 cents, or 3 percent, to $9.34 a bushel in Chicago today. The reached a record $10.095 on December 17 as global demand for the grain, outpaced its supply.