America’s beef industry continues to struggle despite relatively high prices for live cattle. Cow-calf producers are enjoying a great season with weaned calves fetching more than $130 per hundredweight. But profitability is not found throughout the chain. Drovers’ index of economic indicators shows just two of the eight arrows pointing higher – production costs and beef market. Key cattle prices were lower again during October, and feedyard profits have gone from bad to worse. Breakevens on cattle marketed this fall reach into the mid-$90s per hundredweight. Packer margins have also eroded the past two months. The beef market moved higher with improved cutout prices and greater volume of movement.