Mintec retains the current methodology of its pork MBPs

All Market Notes 31 January 2022

Following a period of industry feedback that lasted until Friday 28 January 2022, Mintec has decided to retain its existing methodology for two of its pork Mintec Benchmark Prices: BW56 (Pig Deadweight Grade S EXW European Union) and BW19 (Pig Deadweight Grade E EXW European Union). The market note for the initial proposal on 7 January can be found here, and the market note announcing the extension of the feedback period on 14 January can be found here.

These series are made up of a basket of underlying national pork assessments from Germany, Spain, Poland and France. These are weighted based on three years of production as published by the European Commission. Full details of the current methodology used can be found in the Mintec Assessment Specifications Guide available here.

Throughout the consultation period, Mintec received feedback that the inclusion of new countries into the basket could potentially decrease the volatility and responsiveness of the series as an indicator for European Grade S and Grade E deadweight pork prices, a concern particularly noted with regards to financial hedging and risk management.

In addition, following a statistical review of assessment prices, the inclusion of three additional countries had little to no impact on the final assessment price when modelled with the new weightings. Therefore, Mintec has decided to leave the methodology unchanged for these series. These models are available upon request.

Please send any feedback to methodology@mintecglobal.com, clearly state which market note your comments relate to, and if comments are intended for publication by Mintec.

Mintec will acknowledge receipt of all comments by email.