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Chicago Mercantile Exchange (CME) live cattle futures closed higher on Monday as tight US cattle supplies and firm beef values helped stabilise the market after steep declines in late October, Reuters reported, citing traders.

CME December live cattle futures settled up 2.525 cents at 232.200 cents per pound. Most-active January feeder cattle ended up 4.625 cents at 336.525 cents a pound.

The cattle market tumbled last month on uncertainty over President Donald Trump's push to lower beef prices. But futures have consolidated since hitting multi-month lows last week.

And while cash prices for market-ready cattle declined by about $2 per hundredweight last week compared to the week prior, they remained higher than futures prices, a fact that supported futures on Monday. Cash cattle traded in Texas and Kansas last week at $235 to $237 per cwt.

With December live cattle futures hovering near the equivalent of $232 per cwt, "the discount is just too wide," said Don Roose, president of Iowa-based US Commodities.

Meanwhile, the US Department of Agriculture priced choice cuts of beef on Monday afternoon at $379.25 per cwt, up $1.12 from Friday. Select cuts were up $1.28 at $359.93 per cwt.

The US cattle herd has shrunk to its smallest size in decades after ranchers reduced their herds because a lengthy drought burned up pasture lands used for grazing and raised feeding costs.