May 24 (Reuters) -ICE cotton futures were on track to fall for the third straight session on Wednesday as the dollar climbed to two-month highs, with U.S. debt ceiling negotiations dragging on without resolution and on worries about its effect on economic growth.
* The most active first-month July cotton contract CTc1 fell 1.76 cents, or 2.1%, to 82.59 cents per lb by 10:43 a.m. ET (1443 GMT), trading within a range of 82.36 cents to 84.40 cents per lb.
* A higher dollar makes greenback-priced cotton less attractive, especially for overseas buyers holding other currencies. USD/
* "There's not really a bullish story to be presented in commodities right now ... people are worried about whether or not we're going to get a budget," Kansas-based commodity analyst Sid Love said, referring to the ongoing U.S. debt ceiling negotiations.
* Lack of clear signs of progress between the White House and Republican representatives in negotiations over increasing the $31.4 trillion borrowing limit ahead of the June 1 deadline has dented investor sentiment. MKTS/GLOB
* In the wider grains market, Chicago wheat futures fell, consolidating after a day-earlier rally that was sparked by renewed concerns over a Black Sea deal, while corn and soybeans also eased as markets assessed the weather outlook for U.S. crops. GRA/
* "We're just getting started (on cotton) and we have a long way to go. We've had some rain go down in Texas to get started and things just slowed down a little bit," ahead of a long weekend, Love said, adding that traders were also eyeing the upcoming El Nino.
* While El Nino typically brings dry weather to Asia, it is known for wet weather in parts of North and South America. nL1N35W0CY
* Meanwhile oil prices rose, making production of cotton substitute polyester more expensive and putting a floor under cotton prices. O/R
Reporting by Seher Dareen in Bengaluru; Editing by Shounak Dasgupta