Rpm squid-1.1.21-5 is missing the file
/etc/logorotate.d/squid

A sample file would be (converted apache logorotate conf)
/var/log/squid/access.log {
    postrotate
        /usr/bin/killall -HUP squid
    endscript
}

/var/log/squid/cache.log {
    postrotate
        /usr/bin/killall -HUP squid
    endscript
}

/var/log/squid/store.log {
    postrotate
        /usr/bin/killall -HUP squid
    endscript
}


Hope i was helpfull
           Haris Koutsouris
                 harisk@terra.gr