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

* Results awaited on Egyptian wheat tender

* Monthly USDA oils and fats report due at 1400 CDT

*

LONDON, Nov 1 (Reuters) - Chicago wheat futures rose to their highest level in 8-1/2 years on Monday, buoyed by strong demand against the backdrop of tightening world supplies, while corn prices edged higher.

Dealers noted a massive wheat purchase by Saudi Arabia, while top importer Egypt was also in the market on Monday.

Saudi Arabia's main state wheat buying agency, the Saudi Grains Organisation, said on Monday it had bought about 1.3 million tonnes of milling wheat at an average price of $377.54 per tonne.

The lowest offer presented at an Egyptian state purchasing tender for wheat on Monday was $331.90 per tonne for 60,000 tonnes of Russian wheat on a free-on-board (FOB) basis, traders said.

The most-active wheat contract on the Chicago Board of Trade gained 1.5% to $7.84-1/4 a bushel by 1138 GMT, after peaking at $7.84-3/4 - the highest since February 2013.

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

Prices in Europe also rose with March milling wheat on Euronext up by 1.6% at a 13-1/2-year peak of 283.50 euros a tonne.

CBOT corn rose 0.3% to $5.69-3/4 a bushel, while soybeans fell 0.5% to $12.43-1/2 a bushel.

Large speculators raised their net long position in CBOT corn futures in the week to Oct. 26, regulatory data released on Friday showed.

U.S. soybean crushings likely declined to 4.907 million short tons, or 163.6 million bushels, in September, according to the average forecast of nine analysts surveyed by Reuters ahead of a monthly U.S. Department of Agriculture (USDA) report.

The USDA is scheduled to release its monthly fats and oils report at 1400 CDT on Monday. (Additional reporting by Naveen Thukral in Singapore; Editing by Subhranshu Sahu and Shailesh Kuber)