The weight of increasing grain prices continues to pressure all segments of the beef industry. Indicators measuring America’s beef economy produced an overall downward pointing arrow for April. Four key indicators produced arrows pointing lower, while two yielded arrows pointing sideways and just two pointing higher. Higher production costs continued to produce excessive losses for cattle feeders, topping $111 per head for the month. Lower fed-cattle prices and higher corn prices pushed the steer-corn ratio below 16. Key cattle prices were slightly lower for the month. Cattle on feed numbers remain relatively large, suggesting an increase in beef production in 2008. Competitive meats produced a sideways arrow, as supplies of pork and poultry remain large and prices were nearly steady. An industry bright spot remains packer margins, which were more than $80 per head during April. The month of May is expected to produce some improvement to the industry’s overall economy. But projected higher breakevens will reduce the industry’s economic position again during June.