Higher cattle and calf prices set the stage for positive margins in every production segment according to Drovers’ index of economic indicators. Four arrows point up with three sideways and one down. The only downward indicator reflects higher cost of gain and smaller, yet still positive feeder margins. Fewer cattle on feed, fewer placements and lighter carcass weights indicate a smaller beef supply in the midst of growing demand earning an up arrow. Meanwhile beef became more competitive in the retail meat case in relation to pork and poultry, earning two more positive arrows. Forage prices were higher but lower corn prices warranted a sideways arrow for production costs. Positive packing margins coupled with slower slaughter rates received a sideways arrow.