Share prices of many US agribusiness companies have taken a hit in a general market melee, after the US House of Representatives defeated a $US700 billion bailout bill aimed at working out what many have called the worst financial crisis.
In an ominous sign for the day ahead on the Australian stock market, share prices of US agribusiness companies were hammered across the board as the Dow Industrial fell by a record 777 points.
Pilgrim's Pride lost another 76 cents, closing down 21.4pc at $2.79 after last week's precipitous drop.
The price fell in the general market meltdown even though the company announced an agreement with a lender for a waiver of a provision needed to give the company some breathing room.
Pilgrim had the largest percentage drop of several companies, but other agribusinesses were also hurt.
Closing prices included:
Bunge at $60.10, down $9.77 or 13.9;
ADM at $20.49, down $2.39 or 10.45pc;
Monsanto at $97.15, down $8.91 or 8.40pc;
Smithfield Foods at $14.36, down $2.75 or 16.07pc;
Tyson at $11.24, down $1.45 or 11.43pc; and
John Deere at $47.76, down $7.57 or 13.68pc.
The market was under severe pressure as Wall Street traders reacted with shock to the 228-205 vote against the rescue package.
House leadership will not try for another vote until Congress can assess the market reaction.
While some experts predicted the markets might right themselves, other commentators predicted a financial meltdown for the US and perhaps other economies.
The blame game on the vote began immediately.
House Republican leaders John Boehner, Ohio, and Roy Blunt, Missouri, blamed a partisan floor speech by House Speaker Nancy Pelosi for undermining Republican support.
Democratic presidential candidate Barack Obama drew an ovation when he led criticism of Republicans saying the financial crisis "shouldn't have happened in the first place".
Republican House members voted against today's $700 billion bailout bill almost 2-1, in what largely is viewed as a reflection of widespread disgust across the US with a financial crisis.
Although the Republican votes may have represented constituent views, the immediate plunge in stock market values could mean a backlash against today's votes.
Commentators believe the pain in the markets may also impact the chance for Republican John McCain to win a bid for the presidency.
Democrats voted 140 yeas to 95 nays for the bailout. Republicans voted 65 yeas to 133 nays.
The House Republican vote was a slap down for the Bush Administration, which earlier today urged support for the bailout package noting that "much if not all, of the amounts provided for in the legislation to buy or insure troubled assets will ultimately be recouped".
The statement of administration policy noted that the "true cost of this legislation should be far less than $700 billion".
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