The beef industry’s overall economic health experienced significant improvement during July. Six of the eight categories in Drovers’ monthly economic analysis showed improvement. Key cattle prices earned an upward arrow on the rally in fed-cattle prices. Production costs showed improvement and a slight gain in the steer-corn ratio. Cattle feeding margins improved about $25 per head to a July average of nearly $45. Production indicators earned a sideways arrow due to continued large beef production and despite lower feedlot placements, which suggest reduced production in the months ahead. Competitive meats recorded the lone down arrow as pork and poultry supplies are increasing from already large levels. Despite last month’s significant improvement, the beef industry will continue to struggle with relatively high grain prices and high energy costs.