ASB: Lamb is the 'quiet achiever'

The strength of lamb prices bodes well heading into the Christmas shipment period. Photo / Doug Sherring

New Zealand lamb prices have improved and look to be heading higher, ASB Bank said.

The bank said lamb had been the "quiet achiever" in recent months.

"The price of a 17.5kg lamb has snuck back over the $6 per kilo benchmark," it said.

"Indeed, lamb prices have headed higher with little fanfare over recent months."

In addition, prices in NZ dollar terms have lifted despite the strong dollar. While the lamb price index has lifted around 5 per cent in NZ dollar terms, it is over 12 per cent higher in British pound terms.

"This strength bodes well heading into the important Christmas shipment period," ASB said.

Beef and Lamb's recent forecasts showed decent falls in the lamb crop and mutton slaughter this season.

However, the bank said the el Nino threat loomed large for the sheep sector.