Oct 5 (Reuters) -ICE cotton futures eased in a choppy session on Thursday, as a weak risk appetite among investors in the wider financial markets overshadowed support from a strong export sales report.

* Cotton contract for December CTZ3 was down 0.37 cent, or 0.4%, at 86.64 cents per lb by 12:57 p.m. EDT (1657 GMT).

* It is a little disappointing that "we had such a great export number today", but cotton is following the other outside markets, stocks and energies are lower, said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* The U.S. Department of Agriculture's (USDA) weekly sales report showed net sales of 240,000 running bales of cotton for 2023/2024, were up noticeably from the previous week.

* Oil prices fell 2% as an uncertain demand outlook overshadowed an OPEC+ decision to maintain output cuts, keeping supply tight. Lower oil prices make polyester, a cotton substitute, less expensive. O/R

* Wall Street's main indexes slipped as recent data pointed to still-tight labor market conditions, while U.S. Treasury yields remained at elevated levels. .N

* The USDA report also showed exports of 149,600 running bales, down 6% from the previous week, primarily to China. EXP/COT.

* "If the Australian cotton comes up short due to El Nino, China will probably come to the U.S. in the first quarter of next year," Brown added.

* Limiting losses, the dollar index .DXY fell 0.2%, making cotton less expensive for other currency holders. USD/

* In the grain market, Chicago soybean and corn futures eased as an advancing U.S. harvest underscored ample global supplies. GRA/

Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shilpi Majumdar