April 30 (Reuters) -ICE cotton futures dipped on Tuesday to its lowest level in nearly six months, pressured by a poor demand outlook along with a stronger dollar.
* Cotton contracts for July CTc2 fell 2.9 cents, or 3.6%, to 78.57 cents per lb by 11:45 a.m. ET (1545 GMT), and were on track to log their worst month since October 2022.
* Prices are down due to "a lack of demand as much as anything... conditions for planting are pretty good in the South, so there's no worries about getting the crop in the ground, but there are worries about demand and that continues to impact the market," said Jack Scoville, vice president at Chicago-based Price Futures Group.
* The move is partly technical, Scoville added. "We made some new lows for the last couple of years and that's created additional selling interest."
* The dollar =USD rose 0.4% against its rivals, making cotton more expensive for other currency holders. USD/
* Oil prices edged lower, on the back of rising U.S. crude production as well as hopes of an Israel-Hamas ceasefire. O/R
* Lower oil prices make cotton-substitute polyester less expensive.
* Adding to the downbeat sentiment, Wall Street's main indexes fell with caution prevailing ahead of the Federal Reserve's interest-rate decision and as stronger-than-expected labor costs hinted at persistent inflation. .N
Reporting by Anjana Anil in Bengaluru; Editing by Shailesh Kuber