Aug 10 Chicago Mercantile Exchange live cattle may open higher on Monday driven by Friday's beef cutout price upswing and stronger-than-expected cash values, traders said.

* Last week, market-ready, or cash, cattle in the U.S. Plains moved at mostly $150 to $152 per cwt, up from $147 to $149 the week before, feedlot sources said.

* Packers were forced to spend more for supplies given their profitable margins, tight supplies and the seasonal turnaround in wholesale beef prices, traders and analysts said.

* The price of wholesale choice beef, or cutout, last Friday afternoon was at $236.34 per cwt, $1.15 higher than on Thursday. Select cuts rose $1.75 to $230.14, the U.S. Department of Agriculture said.

* For the week ending Aug. 8, packers processed 6.6 percent fewer cattle that yielded 5.1 percent less beef than the same period a year earlier, USDA said.

* Monday is the first notice day for cattle deliveries against CME's August live cattle contract that will expire on Aug. 31.

* FEEDER CATTLE - Seen higher.

* CME feeder cattle may draw support from potential live cattle market buying and futures' discounts to the exchange's feeder index for Aug. 6 at 217.13 cents.

* LEAN HOGS - Called firm.

* Friday's wholesale pork price gain and potential CME cattle market advances might support the exchange's lean hog contracts, traders said.

* Friday afternoon's wholesale pork price was at $90.17 per cwt, up $1.17 from Thursday, helped by higher loin and pork belly costs, according to the USDA.

* Hog futures are under priced compared to CME's hog index for Aug. 5 at 79.08 cent, which could encourage would-be buyers, the traders said.

* Still burdensome supplies that weighed on cash prices may limit futures' upside potential, traders and analysts said.

* The government reported Friday afternoon's average cash hog price in Iowa/Minnesota had slipped 25 cents per cwt from Thursday to $74.59.

* Last week, 10.3 percent more hogs were processed that resulted in 8.8 percent more pork than the same period a year ago, based on USDA data.

* Investors are watching prices for pork bellies, which make up a large percentage of the hog carcass value, that tends to move lower as summer demand for bacon-lettuce-tomato sandwiches fades.