June 12 (Reuters) -ICE cotton futures slipped on Monday, weighed by a stronger dollar and weaker oil market, while rain in key growing areas added further pressure.
* The December cotton contract CTz3 fell 0.42 cent, or 0.5%, to 81.4 cents per lb, by 10:45 a.m. EDT (1445 GMT). It traded in a tight range of 81 and 81.97 cents a lb.
* The dollar is higher, crude is down and weather in Texas looks pretty good as El Nino weather pattern unfolds, which is all pressuring the cotton market, said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.
* The dollar index .DXY was up 0.1%, making the natural fiber less affordable for overseas buyers. USD/
* Oil prices fell as investor focus shifted to Federal Reserve rate decision due on Wednesday amid concerns about the prospects for Chinese demand and rising Russian supply. O/R
* Lower oil prices make polyester, a cotton substitute, less expensive.
* Projected abandonment in the Southwest has been reduced due to recent favorable rainfall, resulting in a production increase of 1.0 million bales to 16.5 million, the World Agricultural Supply and Demand Estimates (WASDE) report by the U.S. Department of Agriculture showed on Friday.
* El Nino weather pattern traditionally brings wetter conditions in the United States.
* The 2023/24 U.S. cotton projections compared to last month show lower beginning stocks, but higher production, exports and ending stocks, the WASDE report showed.
* "I still expect cotton prices to be range-bound as they have been for months and months. I did say, the top end for December (contract) is 84 cents and the low side is 79 cents," Brown added.
* Speculators trimmed net short position by 1,358 contracts to 1,182 in the week to June 6, data from Commodity Futures Trading Commission showed on Friday.
Reporting by Ashitha Shivaprasad and Ananya Bajpai in Bengaluru; Editing by Shilpi Majumdar