Dec 8 (Reuters) -ICE cotton futures extended losses on Friday after U.S. Department of Agriculture (USDA) projected lower 2023-24 global consumption of the natural fiber and higher ending stocks in its monthly report.

The front-month March contract CTc1 fell 1.16 cents, or 1.4%, to 81.43 cents per lb by 2:12 p.m. ET (1912 GMT). However, the contract was up 3.8% for the week.

A considerable dip in global consumption, with a large portion of that coming from China, was relatively bearish for prices, said Bailey Thomen, cotton risk management consultant at StoneX Group.

The World Agricultural Supply and Demand Estimates (WASDE) report projected world consumption for 2023-24 at 1.6 million bales lower due to a 1.0 million bales reduction in China. The world ending stocks was forecast 900,000 bales higher in December.

"The high labor costs and interest rates are no doubt contributing to reduction in domestic consumption, and downstream demand continues to lack," Thomen said, adding that the market has not seen a mill use number that low since 1884, which definitely gives a bearish overcast.

The report also highlighted that mill use in the U.S. was cut by 150,000 bales as spinning activity continued to lag at 1.9 million bales, likely to be its lowest since 1884.

The USDA in its report also lowered U.S. production by 314,000 bales to 12.8 million due to a 500,000 bales decrease in the Texas crop, while global production was forecast 540,000 bales lower than in November.

Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shailesh Kuber and Shinjini Ganguli