May 4 (Reuters) -ICE cotton futures jumped more than 3% and traded limit up on Thursday after a weekly federal report showed a jump in exports of the natural fiber.

* The second-month July cotton contract CTc2 rose 3 cents, or 3.8%, to 81.76 cents per lb by 1137 EDT (1537 GMT). It traded in a range of 78.93 and 81.76 cents a lb.

* The U.S. Department of Agriculture (USDA) report showed net sales of 231,300 running bales (RB) for 2022/2023, up 19% from the previous week and 65% from the prior 4-week average. EXP/COT

* Exports of 24,800 RB were up 20% from the previous week, with the primary destinations mainly being China at 9,600 RB and Vietnam at 5,200 RB, the USDA said.

"Things are looking a little bit more optimistic today than they were a couple of weeks back," including the export sales said Kansas-based commodity analyst Sid Love.

* "Next week on the 12th (May) USDA is going to give us their outlook on the crop and the markets are looking forward to that."

* The U.S. Department of Agriculture's (USDA) monthly report on world supply and demand is due on May 12.

* Oil prices were steady after European Central Bank's (ECB) decision to slow interest rate hikes, but demand concerns in major consuming countries continued to weigh. O/R

* Higher oil prices make polyester, a cotton substitute, more expensive.

* Elsewhere, Chicago wheat futures pared some of their gains but remained near a one-week high hit earlier as concerns over heightened tensions between Russia and Ukraine fuelled doubts about the future of a Black Sea export corridor.GRA/

Reporting by Rahul Paswan in Bengaluru; Editing by David Gregorio