While the trend toward higher milk production continues, the 1 percent increase seen across the United States in October probably won’t be interpreted as bearish for the markets.

Dave Kurzawski, dairy analyst for FC Stone in Chicago, termed Tuesday's Milk Production report from the USDA as “neutral.”

While production was up 1 percent across the entire U.S., a 1.2 percent increase was shown in the 23 major dairy states.

Kansas posted a hefty 6.1 percent increase in October compared to the same month a year earlier. California, the nation’s No. 1 milk-producing state, was up 1 percent and Wisconsin, No. 2, was up 0.9 percent.

Production in the 23 major states averaged 1,806 pounds in October, 14 pounds above October 2012.

To read the full report, click here.