Aug 3 (Reuters) -ICE cotton futures fell to a two week low on Thursday, on a stronger dollar and lower exports of the natural fiber.

* The most-active December cotton contract CTZ3 fell 0.31 cent to 84.28 cents per lb by 11:55 p.m. EDT (1555 GMT), after touching a two-week low of 83.25 cents earlier in the session.

* The dollar hit a four-week high, making cotton more expensive for other currency holders. USD/

* The U.S. Department of Agriculture's weekly export sales report showed net sales of 9,900 running bales of cotton for 2022/2023, down 47% from the previous week, also "down noticeably" from the prior four-week average. EXP/COT

* The data is "terrible", said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia, adding "the sales for the new crop weren't robust either because countries are waiting to see how their crops are doing before they commit to buying cotton".

* Weakness in wider markets "also undermined cotton's confidence to go higher", Brown said.

* Wall Street's main indexes slipped as a jump in bond yields, a mixed bag of corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. .N

* Limiting cotton's losses, oil prices LCOc1, CLc1 jumped on Saudi Arabia's extension of output cuts, making cotton substitute polyester more expensive. O/R

* China sold 10,002.3755 metric tons of cotton from its state reserves on Aug. 3 and would sell another 10,003.5091 metric tons on Aug. 4, according to the trade center and an industry website.

* "It's a friendly fundamental, China would not be selling if their crop was not in trouble, they would not be digging into their reserves," Brown added.

* Chicago wheat futures edged higher, as the market assessed global supply prospects marked by large Russian exports and war-curtailed shipments from Ukraine. GRA/

Reporting by Harshit Verma in Bengaluru; Editing by Shilpi Majumdar