In a bullish sign for milk prices, December milk production declined for the fifth straight month.

Milk production in the top 23 dairy states dropped 0.8 percent in December compared to the same month a year earlier. The decline was due to 206,000 fewer dairy cows in the top 23 states.

Once again, the biggest declines occurred in the Western states. Milk production in Arizona and Colorado declined 10.9 percent and 11.1 percent, respectively. California, the nation’s No. 1 dairy state, saw production decline by 4.6 percent. Meanwhile, the Upper Midwest states of Minnesota and Wisconsin grew their production by 3.2 percent and 4.3 percent, respectively, according to USDA’s “Milk Production” report released Tuesday afternoon.

Source: USDA "Milk Production" report.