By Karl Plume

CHICAGO, June 1 (Reuters) - Chicago Mercantile Exchange cattle futures advanced on Monday on technical buying and short-covering after two days of declines, and as futures were at a large discount to the most recent cash cattle trades.

A drop in feed corn prices to multi-month lows and news that a New World screwworm case was found just 31 miles from the U.S. border gave feeders an additional boost.

The U.S. has been closed to Mexican cattle imports for months as cases of parasitic pests spread northward. The latest case was the closest to the U.S. border so far in the outbreak.

August live cattle LCQ26 gained 1.550 cents to settle at 240.600 cents per pound, while August feeders FCQ26 jumped 3.125 cents to finish at 351.550 cents per pound.

Beef demand has been resilient despite historically high prices. But rising gas prices and slumping consumer sentiment have stoked fears that U.S. consumers will cut back on purchasing beef, typically the priciest protein on grocery store shelves.

The U.S. Department of Agriculture on Monday quoted the choice boxed beef cutout at $392.83 per hundredweight, up $1.36, while select cuts dipped by 9 cents to $383.09 per hundredweight.

Lean hog futures ended mostly lower, continuing a recent down-trend propelled by fund selling.

The actively traded July hog contract LHN26 was the only gainer on the day, finishing up 0.350 cent at 99.850 cents per pound.