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GRAINS-U.S. wheat edges up on Saudi tender; corn, soy also firm

* Saudi Arabia seeking 480,000 tonnes of wheat

* Weak exports weighing on EU wheat prices (Adds quotes, updates prices)

LONDON, Dec 1 (Reuters) - U.S. wheat prices edged higher on Friday, supported partly by potential demand from Saudi Arabia, while corn and soybean futures also rose.

Saudi Arabia's main state wheat buying agency, the Saudi Grains Organization (SAGO), said on Thursday it had issued an international tender to buy 480,000 tonnes of hard milling wheat. The tender deadline is Dec. 1.

"Although demand for U.S. wheat remains sluggish ... pricing of better quality is seen as competitive against other origins. It may feature in the upcoming Saudi tender," David Sheppard, managing director of British merchant Gleadell said.

The CBOT's most active wheat contract was up 0.5 percent at $4.35 a bushel at 1132 GMT.

The market has also been underpinned this week by the prospect of a fall in U.S. wheat area.

"That reduced area and declining winter wheat crop ratings should provide support long term, although the forecast is seen bringing moisture into the main growing states, which in turn may reduce current dryness concerns," Sheppard said.

March milling wheat on Paris-based Euronext was down 0.3 percent at 162.00 euros a tonne, with the recent strength of the euro helping to slow the pace of exports, which are running well behind last season's pace.

Algeria's state grains agency OAIC bought 570,000 tonnes of optional-origin milling wheat in a tender this week.

"Although it is envisaged that France will get the majority share of the Algerian business, it is thought at least three Argentinian cargoes were included," Sheppard said.

U.S. corn prices were higher with the most active CBOT contract up 0.4 percent at $3.57-1/4 a bushel.

News that the U.S. Environmental Protection Agency will require fuel companies to blend 15 billion gallons of conventional biofuels like corn-based ethanol in 2018 was seen as supportive. The total was in line with 2017.

"The importance of the EPA announcement overshadowed another poor week of U.S. export sales. Exports were down considerably from the prior week and continue to be a lingering worry for the market." said Commonwealth Bank of Australia analyst Tobin Gorey in a market note.

The U.S. Department of Agriculture reported export sales of U.S. corn in the latest week at 599,200 tonnes, below a range of trade expectations for 700,000 to 1,100,000 tonnes.

CBOT's most active soybean contract was up 0.4 percent at $9.89-3/4 a bushel.

For soybeans, weekly U.S. export sales totalled 942,900 tonnes, in line with trade expectations. (Additional reporting by Naveen Thukral; Editing by Vyas Mohan and David Evans)