March 14 (Reuters) -ICE cotton futures extended gains for a second straight session on Tuesday, as risk sentiment improved on a rebound in U.S. equity markets after consumer prices rose in line with expectations.

* Cotton contract for May CTK3 rose 0.69 cents, or 0.9%, to 82.34 cents per lb by 1617 GMT. Prices extended gains from a multi-months low hit in the last session, when they eventually traded limit up and settled 3.8% higher.

* Monday's jump prompted ICE Futures U.S. to expand cotton futures daily price limit to 4 cents per pound.

* The cotton market is following the shadow of the Dow Jones which has gained, with the Consumer price index (CPI) data allowing the stock markets to regain some of its composure, said Keith Brown, principal at cotton broker Keith Brown and Co in Georgia.

* Global shares turned higher on Tuesday, stemming a five-session rout after key U.S. data met expectations and bolstered bets of a smaller interest rate hike by the Federal Reserve at its next meeting. MKTS/GLOB

* Cotton is higher and part of the reason is also "massive amount of price fixations that took place" as old crop needs to squared up before banks start lending money for the new crop, Brown added.

* Meanwhile, Chicago wheat futures, corn and soybeans edged lower as volatility led by a U.S. banking crisis eased and a wartime export corridor from Ukraine was expected to continue. GRA/

* The market now awaits planting acreage report coming out towards the end of this month.

Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber