Dec 14 (Reuters) -ICE cotton futures were little changed on Thursday as support from a weaker dollar was countered by a federal report showing a decline in sales of the natural fiber.

* The front-month March contract CTc1 was little changed at 80.98 cents per lb by 11:43 a.m. ET (1643 GMT). Prices traded in a range of 80.94 and 82.28 cents a lb.

* The U.S. Department of Agriculture's weekly sales report showed net sales of 57,800 running bales of cotton for 2023/2024 were down 50% from the previous week and 77% from the prior four-week average.

* "Unfortunately, today sales were pretty dismal," said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* The report also showed that exports were up 7% from the previous week and 42% from the prior 4-week average.

* "The U.S. dollar took another sharp tumble today and the stock market went to all-time highs and I think cotton is trying to catch up with that," Brown added.

* The dollar index .DXY was down 0.7%, making cotton more attractive to buyers holding other currencies. USD/

* Further lending support, Wall Street's main indexes rose after the Federal Reserve hinted at an end to its aggressive rate hike campaign and signaled that borrowing costs would be lower next year. .N

* Oil prices rose boosted by a weaker dollar and as the International Energy Agency (IEA) lifted its oil demand forecast for next year. Higher oil prices make polyester, a cotton substitute, more expensive. O/R

* In the grain market, Chicago soybeans were largely unchanged as expectations of rains in Brazil's parched oilseed-producing regions continued to pressure prices. GRA/

Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shweta Agarwal