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WASHINGTON (Dow Jones)--South Korea's recent agreement to ease its ban on U.S. beef will gradually boost U.S. exports with a more noticeable increase in shipments next year, the U.S. Department of Agriculture said Tuesday in its monthly supply and demand report. The USDA on Tuesday raised its U.S. beef export forecasts for this year and 2007. The new monthly predictions raise 2006 beef exports to 1.123 billion pounds, up from 1.103 billion pounds, and 2007 exports to 1.5 billion pounds, up from 1.385 billion pounds. "Exports to Canada and Mexico are expected to remain string and the recent announcement to permit the export of boneless beef to South Korea is expected to support a modestly stronger export forecast, especially for 2007," the USDA said. "However, the pace of recovery in exports to South Korea is expected to be gradual." South Korea originally banned U.S. beef in December 2003 after the USDA announced finding the first case of bovine spongiform encephalopathy, or mad-cow disease, in the U.S. Source: Bill Tomson; Dow Jones Newswires; 202-646-0088; bill.tomson@dowjones.com