June 13 (Reuters) -ICE cotton futures inched lower on Tuesday as showers in key growing areas in the United Statesboosted outlook for the crop, although a weaker dollar and gains in oil market underpinned the natural fiber.
* The most-active December cotton contract CTz3 fell 0.26 cent, or 0.3%, at 81.05 cents per lb, by 10:38 a.m. EDT (1438 GMT). It traded in a tight range of 81.05 to 82.11 cents a lb.
* "Cotton is holding in pretty good shape as there is some support from a weaker dollar. Meanwhile, the Delta and Texas has been getting rains, so there is optimism about decent production," said Jack Scoville, vice president at Chicago-based Price Futures Group.
* Lending support, the dollar index .DXY slipped 0.4%. A weaker dollar makes cotton more attractive to buyers holding other currencies. USD/
* Oil prices rose on Tuesday, making polyester, a cotton substitute, more expensive. O/R
* The U.S. Department of Agriculture (USDA) in a weekly crop progress report on Monday showed 81% of U.S. cotton was planted in the week ended June 11 compared to 71% a week ago.
* The report also highlighted that 49% of cotton was in good-excellent condition versus 51% a week ago.
* Traders now await the USDA's weekly export sales data due on Thursday.
* Elsewhere, Brazil's 2022/23 cotton (lint) output were seen at 2.9 million tonnes versus 2.5 million tonnes last season, according to the country's food supply and statistics agency Conab.
* In other agriculture markets, Chicago corn futures held near a seven-week high struck a day earlier, while wheat ticked lower after a three-session rise. GRA/
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber