July 11 (Reuters) -ICE cotton futures on Thursday extended gains from the previous session supported by a weaker dollar, as investors await the World Agricultural Supply and Demand Estimates (WASDE) report from the U.S. Department of Agriculture (USDA) due on Friday.

* Cotton contracts for December CTZ4 rose 0.46 cent, or 0.65%, to 71.39 cents per lb at 11:02 a.m. EDT (1502 GMT).

* The prices are up as "11,932 bales got taken off ICE's certified stock, while the U.S. dollar sunk 0.7% upon cooler (Consumer Price Index) CPI readings," said Valentin Olah, risk management consultant at StoneX Group.

* Certified cotton stocks, which can be delivered against the contract, were at 41,858 bales compared with 53,790 bales on July 9, according to ICE data.

* The dollar dropped on Thursday after data showed that headline consumer prices unexpectedly fell in June, which may make it more likely that the Federal Reserve will begin cutting interest rates in the coming months. A weaker dollar makes cotton less expensive for overseas buyers.

* The USDA weekly report showed export sales of 160,700 running bales (RB), down 9% from the last week and 8% from the prior four-week average. EXP/COT

* The primary destination for exports was top consumer China with 64,800 RB, the report added.

* Supporting the natural fiber, Chicago wheat, corn and soybean futures regained ground after losses this week on favorable crop prospects, and as investors adjusted positions before U.S. inflation data and Brazilian and U.S. crop forecasts. GRA/

* Meanwhile, oil prices rose on Thursday with the Brent benchmark holding above $85 a barrel, making cotton-substitute polyester more expensive. O/R

Reporting by Anmol Choubey in Bengaluru; Editing by Shailesh Kuber