CHICAGO, June 13 (Reuters) - Live cattle futures on the Chicago Mercantile Exchange closed higher on Tuesday, rallying from early declines, as strong beef prices and tight cattle supplies buoyed futures, traders said.
CME August live cattle futures settled up 0.725 cent at 173.925 cents per pound. August feeder cattle finished up 1.4 cents at 240.450 cents per pound.
In the wholesale beef market, the U.S. Department of Agriculture (USDA) priced choice cuts of beef at $337.99 per cwt, up 56 cents from Monday and the highest since Sept. 1, 2021. Prices for select cuts fell 76 cents, to $309.48 per cwt.
Cattle futures continued to draw support from strong cash cattle markets, even though cash trade has been quiet so far this week. The USDA reported last week's average five-area steer price at $188.75 per cwt, a premium of about $9 per cwt, or 9 cents per pound, to front-month CME June futures, which settled Tuesday at 179.425 cents per pound.
CME hog futures closed mixed, with the most-active July contract settling down 1 cent at 90.600 cents per pound, pausing after Monday's six-week high. August hogs ended Tuesday up 0.050 cent at 87.425 cents a pound.
Wholesale pork prices firmed, a supportive signal for hog futures. The USDA priced the carcass cutout at $89.52 per cwt on Tuesday afternoon, up $1.32 from Monday and the highest since late December. (Reporting by Julie Ingwersen; Editing by Tom Hogue)
