U.S. soybean futures ended near 4-year highs Monday, recovering from early selling pressure on strong demand and fear of tightening inventories through 2013.

New crop soy futures or contracts that represent crops for delivery in the 2012-13 marketing year that begins Sept. 1 led the rally in soybeans.

Traders were concerned that 2013 stockpiles of soybeans won't be large enough to keep up with strong demand, particularly with South American production reduced by drought this year.

Strong export demand fueled the strength in new crop soybeans, with new sales reported to China. The U.S. Department of Agriculture announced Monday the sale of 220,000 metric tons of soybeans for delivery to China during the 2012-13 marketing year.

Traders are realizing that nearly all of the large sales reported in recent weeks are for new crop delivery, a feature encouraging investors to shift buying to deferred month contracts, said Chad Henderson, analyst with Prime Ag Consultants in Brookfield, Wis.

Traders took profits on favorable price differentials or spreads between old and new crop contracts to end the month. Old crop soybeans had rallied near 4 year highs recently, while new contracts lagged behind, despite worries about smaller than expected acreage and U.S. inventories tightening next year, Henderson said.

In the month of April, the most active July contract was up over 6% while new crop November was up only up 0.2% heading into Monday.

Aiding the adjustments in spreads, were larger-than-expected deliveries against the May future. The deliveries were seen as a signal that current available supplies of soybeans weren't in tight supply.

However, the surge in new crop futures and lingering concerns that solid demand will continue to dwindle down current supplies helped lift old crop futures to settle at new highs, analysts said.

The most active July soybean contract finished 12 cents higher at $15.05 1/2 a bushel, while the new crop November contract ended up 19 cents to $13.81.

Fear of tighter soybean supplies fueled a rally in soymeal futures as well. Smaller soybean supplies mean less beans available to crush into meal, analysts say. The most active July contract was up $7.10 to $435.50 a short ton, a nearly 4 year high.

Separately, corn and wheat ended higher, with corn still drawing support from tight supplies and last week's highest daily export sales announcement in 20 years.

CBOT July corn ended up 8 3/4 cents at $6.34 1/4.

CBOT July wheat ended up 4 1/2 cents at $6.54 1/2 per bushel, July KCBT wheat ended 3 cents higher at $6.62 and July MGEX wheat ended up 4 3/4 cents to $7.83 1/2.

-By Andrew Johnson Jr, Dow Jones Newswires; 312-347-4604 begin_of_the_skype_highlighting 312-347-4604 end_of_the_skype_highlighting; Andrew.johnsonjr@dowjones.com