U.S. milk production totaled 19.47 billion pounds in October, up 3.7 percent year-over-year, according to the USDA on Friday. Held at a record for the month, driven by large milk cow numbers and milking efficiencies.

Total production this year reached 193.15 billion pounds, up 2 percent from a year ago. The USDA’s current target of 231.4 billion pounds could be too high if production follows seasonal trends for November and December. Still, production is expected to be a record this year and continue in 2026.

The number of milk cows declined for the first time after rising most of the year. Still higher milk per cow offset lower herd numbers. Milk per cow averaged 2,033 pounds, up 1.4 percent year-over-year.

Class III dairy milk futures fell to new contract lows this week as the market continued to signal an oversupply. Dairy product demand has been good, but it’s hard to overlook the production efficiencies for the U.S. milk industry.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.