A rally in the cattle markets spurred a rebound in Drovers’ Economic Indicators for May. The indicators measuring America’s beef economy produced an overall upward-pointing arrow for the first time since last October. Five key indicators produced arrows pointing higher, while three yielded sideways arrows. None pointed lower. The higher pointing arrows reflect a significant improvement in their respective indicators, not necessarily a profitable position. For instance, production costs, and performance and margins both produced sideways arrows after several months of down arrows. The steer-corn ratio improved last month, and grain prices were only down slightly — hence, the sideways arrow. Cattle-feeding margins improved dramatically, from losses of $111 per head in April to losses of $16 per head in May. Improvement, but still not profitable. The Sterling Profit Quotient suggests the industry will continue to struggle with poor margins throughout the summer.