KANSAS CITY (Dow Jones)--Cattle feeders in the Plains Tuesday continued to see fed cattle prices this week being up $1 to $2 per hundredweight from a week ago on a live basis.

Cattle sold last week at mostly $85 live in Kansas, Oklahoma and Texas and $83 to $84 with a few up to $84.50 in Nebraska. On a dressed basis, cattle traded at $131 to $132 in Nebraska and up to $134 in Kansas.

Declines in futures prices Monday were shrugged off as being the result of month-end book-squaring by speculative traders, a move that has little or nothing to do with the cash market strength for the week. Overnight prices were up, indicating to some analysts and brokers that the bookkeepers were happy, and that trading could get back to basics.

Those basics include ideas that the number of slaughter-ready cattle is down from a week ago, and the industry is entering a period of tighter inventories.

Some traders also see a slow increase in consumer demand for beef. While much of this is anecdotal, there are indications that retailers intend to step up their beef advertising in early September, and traders say they wouldn't do this if consumers were buying something else.

Traders also said beef movement in wholesale markets Monday was "pretty good for a Monday" indicating moderate to active beef movement at retail over the weekend.

The U.S. Department of Agriculture Monday reported its choice boxed beef cutout price at $144.04 per hundredweight, up $0.49, while select beef was up $0.31 at $136.01. The volume of fabricated loads was 142 and there were 80 loads of trimmings and coarse grind product reported.

The HedgersEdge packer margin index is a plus $38.35 a head, compared with the previous index of a plus $40.10.

Urner Barry's Yellow Sheet Monday said the boxed beef market exhibited the same characteristics as it did for most of last week: sellers were able to trade their inside rounds at slightly higher levels; buyers found shortages of short loins, and prominent retail ads absorbed most of the spot-market supplies. Ground beef prices were softer.

-By Lester Aldrich, Dow Jones Newswires; 913-322-5179; lester.aldrich@dowjones.com