Milk production nationally was up 2.9 percent during October, marking eight straight months during which milk production was higher than the same month last year. Cow numbers were up just 0.2 percent during October, but milk per cow was up just over 2.6 percent. Compared to the previous year, milk per cow has been up every month during 2010 except January.

During October, there were 9.118 million cows in the U.S. Cow numbers have remained unchanged for three consecutive months. The U.S. dairy cow herd reached 9.134 million head in July, which was the highest number since August 2009.

In the top 23 states, milk production during October was up 3.3 percent.

Number 1 California was up 4.3 percent in milk production. In October, California had 20,000 fewer cows than a year ago (-1.1 percent) but was up 5.5 percent in milk per cow.

Wisconsin was up just 0.8 percent in milk production. The state had only a slight gain in milk per cow but had 6,000 more cows (+0.5 percent) than a year ago.

New York was up 4.7 percent. That state was down 3,000 cows (-0.5 percent) from a year ago, but milk per cow was up 5.2 percent.

New York's milk output during October was 1.054 billion pounds. Idaho's output was 1.091, and that state was up 6.9 percent in milk. Idaho had a 4.6 percent (25,000 head) jump in cow numbers and 2.1 percent rise in milk per cow.

Pennsylvania was up 2.9 percent in milk production, and Minnesota was down 0.1 percent.

Oregon saw an 11.4 percent rise in milk production. The state had a 6.1 percent jump in cow numbers (7,000 head) and 5.0 percent gain in milk per cow.

The October Milk Production report was released last Thursday afternoon. Over the next four trading days, December's Class III futures price dropped 29 cents to $13.70, January dropped 57 cents to $13.40, February dropped 38 cents to $13.64, and March dropped 1 cent to $13.99.