May 8 (Reuters) -ICE cotton futures retreated on Monday on concerns over forecast for rain in the key growing region of West Texas, while investors await a monthly supply and demand report later this week.
* The second-month July cotton contract CTc2 fell 0.49 cent, or 0.6%, to 83.41 cents per lb by 1129 EDT (1529 GMT).
* Prices reversed course after earlier hitting their highest since April 19 at 84.87 cents, driven by factors including improved exports data last week, while also drawing support from an uptick in oil and grains markets.
* The federal monthly report from the U.S. Department of Agriculture (USDA) is due on May 12.
* While the forecast for rain on Friday drove the dip in prices, it was not much of a significant move overall and "I don't see the market doing much until it gets confirmation on what the (supply-demand) numbers are", said Rogers Varner, president of Varner Brokerage, in Cleveland.
* Chicago wheat and corn rose on uncertainty over whether Ukraine's safe shipping agreement for grain exports will be extended, while oil prices jumped as U.S. recession fears eased. GRA/ O/R
* Higher oil prices make polyester, a cotton substitute, more expensive.
* The Commodity Futures Trading Commission (CFTC) said on Friday speculators trimmed their net short position on cotton futures by 272 contracts to 23,390 in the week to May 2. CFTC/
* ICE Futures U.S. reverted cotton futures daily price limit to 4 cents per pound on Friday.
Reporting by Rahul Paswan in Bengaluru; Editing by Shilpi Majumdar