Fallout from the dramatic financial crisis in the United States could impact significantly on the State's rural economy.

The crash, which has Wall Street close to 7 per cent of its total value, is likely to flow through to producers in terms of commodity prices and the overall health of the business sector.

Grain futures were the first to feel the pinch, as Chicago Board of Trade December 2008 futures went down on Monday, a maximum US50 cents a bushel to US668c/bu.

It was followed by a slight recovery, edging back to US680c/bu yesterday (Wednesday).

But thanks largely to a depreciation in the $A, the farming sector has been somewhat insulated from the worst of the drop in world prices.

* Extract from a full report in Stock Journal, October 2 issue.