By P.J. Huffstutter

CHICAGO, June 24 (Reuters) - Chicago Mercantile Exchange cattle futures closed higher on Wednesday, with feeder cattle rallying on strength in the cash market and trader confidence of continued strong consumer beef demand, market analysts said.

High cash prices continued to support futures at a time when U.S. cattle supplies are historically tight, analysts said. They added that futures looked too low compared to cash prices, which saw bids in northern sale barns climb to $260 per hundredweight (cwt) this week.

That spread is helping to drive futures higher, even as beef packer margins have been deeply in the red, said Ross Baldwin, a livestock analyst at John Stewart & Associates.

"The live bids have been really strong," Baldwin said. "We're starting at the high end of the range we were at on Friday. It still comes down to cash is strong, supplies are tight and packers are lacking leverage."

Traders shrugged off pressure from the U.S. dollar advancing for a third straight day, hitting a 13-month high, as markets braced for anticipated rate hikes from the Federal Reserve this year. /.DXY

A stronger dollar can make beef more expensive for international buyers, and weigh on export demand, while expectations of interest rate increases later this year could boost both operational costs for cattle producers and possibly lead to higher meat prices at grocery stores.

Wholesale prices were mixed. In boxed beef, the U.S. Department of Agriculture priced choice cuts 63 cents higher at $400.94 per cwt Wednesday morning, while select cuts fell back $1.20 to $379.86 per cwt.

CME benchmark August LCQ26 live cattle ended 0.525 cent higher at 246.525 cents per pound. CME August feeder cattle FCQ26 futures closed up 4.775 cents at 372.925 cents per pound.

Meanwhile, October hog futures were mixed, with the front-four contracts sliding lower and 2027 contracts ticking higher. Wholesale prices for pork turned lower, with the USDA reporting that pork carcasses were priced at $93.86 per cwt on Wednesday afternoon, down $1.39.

CME lean hog futures were mixed. Most-active August LHQ26 hogs settled 0.525 cent lower at 96.700 cents, while nearby July LHN26, December LHZ26 and back-end months also eased.