Oct 3 (Reuters) - ICE cotton futures slipped to a more than one-week low on Tuesday, weighed down by a firmer dollar and concerns over demand from key consumer China.

* Cotton contract for December CTZ3 fell 0.33 cent, or 0.4%, to 87.42 cents per lb by 12:54 p.m. EDT (1654 GMT).

* The dollar index .DXY hit an over 10-month high, making the natural fiber less appealing to overseas buyers. USD/

* "Today we made a new high in the dollar and that's not friendly for the (cotton) market," said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

* "With the Brazilian currency BRL=being weaker against the dollar, it's going to make Brazilian cotton more attractive. This might prompt Brazilian farmers to sell to China," Nunn added.
* Brazil is on track for record cotton shipments in the 2023/24 commercial year, an exporter group said last week, citing a large crop and likely record sales in September.
* Meanwhile, the U.S. Department of Agriculture (USDA), in a weekly crop progress report on Monday, said 30% of the cotton crop was in good to excellent condition compared with 30% last week.
* Wall Street's key indexes dropped as Treasury yields extended their multi-year-high rally after hotter-than-expected jobs data fanned fears of interest rates remaining higher for longer. .N

* Elsewhere, Chicago soybean futures fell and corn ticked lower as the U.S. harvest curbed prices. GRA/

Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shailesh Kuber