GRAINS-CBOT wheat hits 8-1/2-year high, buoyed by strong demand

* Saudi Arabia’s SAGO buys 1.3 mln tonnes of wheat

* Traders await Egyptian wheat tender results

* Monthly USDA oils and fats report due at 1400 CDT (Adds start of U.S. trading, latest prices, changes dateline from LONDON)

CHICAGO, Nov 1 (Reuters) - U.S. wheat futures rose to their highest prices in 8-1/2 years on Monday, buoyed by strong demand against the backdrop of tightening world supplies.

Corn futures advanced on spillover strength from wheat’s gains, traders said.

Wheat rallied on a flurry of deals in the export market, highlighted by a massive 1.3-million tonnes purchased by Saudi Arabia. Traders are waiting for the results of a tender from Egypt, the world’s biggest buyer of the grain.

“The wheat market takes on new highs amidst strong global demand,” CHS Hedging said in a note.

The most-active wheat contract on the Chicago Board of Trade was up 23-1/4 cents to $7.96 a bushel at 10:30 a.m. CDT (1530 GMT). The contract reached its highest since January 2013 at $7.98-1/4.

MGEX spring wheat hit its highest price since June 2011, while Paris Euronext wheat rallied to its highest prices in 13-1/2 years.

Poor spring wheat harvests and an export duty imposed by Russia have heightened expectations of relatively tight supplies this season.

Russian wheat export prices gained further last week after rising over the past four months, analysts said on Monday.

In nearby Ukraine, light rain showers this week leave at least half of the wheat crop too dry, Commodity Weather Group said in a report.

In the CBOT corn market, the most-active contract jumped 12-1/4 cents to $5.80-1/2 a bushel and touched its highest prices since Aug. 13. Soybeans rose 9 cents to $12.44-3/4 a bushel.

The USDA is scheduled to release its monthly fats and oils report at 2 p.m. CDT. U.S. soybean crushings likely declined to 4.907 million short tons, or 163.6 million bushels, in September, according to a Reuters survey.

The USDA said separately that private exporters reported the sale of 132,000 tonnes of U.S. soybeans for delivery to China in the 2021/22 marketing year. (Reporting by Tom Polansek in Chicago, Nigel Hunt in Paris and Naveen Thukral in Singapore Editing by Shailesh Kuber and Mark Potter)