Indicators measuring America’s beef economy weakened during May, despite a continuing spring rally for stocker and feeder prices. Four of the eight arrows pointed higher last month in Drovers’ index. Just one arrow points lower, and three point sideways. Key cattle prices saw a slight decline in fed cattle but significant gains for calves and yearlings. Feedyard margins improved in May after turning positive in April for the first time since last August. Packer margins in May were a negative $23.08. Feedyard margins are expected to remain positive through June, but packer margins will not show much improvement. Breakeven margins have declined from the mid-$90s in February to an expected mid-$80s level during June and July. The arrow for production indicators turned lower in May due to greater beef production.