U.S. milk production totaled 18.79 billion pounds in November, up 4.5 percent year-over-year, according to the most recent data from the USDA on Monday. Output was a record for the month, driven by strong milk cow numbers and production per cow.

Year-to-date production has been outpacing previous years by a wide margin. Output for the first 11 months of 2025 reached 211.9 billion pounds, up 2.3 percent from last year. Production is well on track to meet the USDA’s 2025 forecast of 231.4 billion pounds, considering the current pace.

The number of milk cows in November totaled 9.57 million head, unchanged from October but 211,000 more than in November 2024. Output per cow averaged 1,963 pounds, up 41 pounds from the same period last year. California experienced 10 percent growth from last year as the state continues to recover from disease-related production declines due to bird flu infections in 2024.

January Class III dairy milk futures traded sharply lower on Monday. Prices fell more than 2 percent to close at 15.27 cents a pound. Prices are nearing their contract low of 15.05 posted on Nov. 26. Large U.S. and global supplies continue to limit price gains as buyers have little worry over securing enough product.

Bloomberg reported that China imposed substantial tariffs on dairy product imports from the European Union following an anti-dumping probe. The country imposed duties as high as 43 percent on processed cheeses and some cream, according to the country’s Ministry of Commerce. China is the EU’s ninth-largest destination for cheese imports. China’s retaliation against the EU likely won’t drive importers to U.S. products. New Zealand could see an uptick in exports before U.S. exporters benefit.

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