# US butter, cheese, NFDM prices converge near $1.50

> Butter, both cheese grades and NFDM traded near $1.50/lb on the CME board, a rare convergence. USDA June Dairy Products data showed the herd at 9.677 million head, milkfat output at a June record, and cheese production up 1.1% year on year, while Fairlife's plant outage is tightening fresh milk supply.

- Date: 2026-08-07 · published 2026-08-07T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/4740-us-butter-cheese-nfdm-prices-converge-near-1-50
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Converging product prices and a plant outage tightening milk supply support dairy prices in the near term, though record milkfat output limits the rally. Dairy processors' demand for milk and related feed ingredients is affected.

## Read by commodity

- MILK: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2026-08-07 | 5 | +7.1% | 2.8 | Fairlife plant outage and converging dairy product prices near $1.50/lb point to tightening fresh milk supply and a price floor in cheese and butter. |

## Sources

- vespertool.com: https://vespertool.com/news/us-butter-cheese-and-milk-powder-prices-converge-near-1-50/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.