With the grilling season set to kick off, lots of attention is focused on beef demand as the tightening of beef supplies will increase the pressure for higher wholesale and retail beef prices.

Packers are working to remain profitable, using basis for extended delivery, freighting cheaper inventory to areas of regional cash strength and running harvest at a snail’s pace.

Tyson Foods Inc posted a surprise second-quarter loss on Monday and cut its full-year revenue forecast on falling beef and pork prices, sending the U.S. meat packer’s shares tumbling 9% before the bell.

Nearly all market indicators suggest the time to rebuild the cow herd is here, all we need is a cooperative environment. For those turning out bulls this spring the foundation of herd rebuilding has already begun.

Negotiated cash cattle prices declined for the third consecutive week in a moderate to active trade. Wholesale beef prices also declined yet remain above seasonal averages.

Exports rose 2.1% in March from the prior month to a seasonally adjusted $256.2 billion while imports declined 0.3% to $320.4 billion, the Commerce Department said.