July 24 (Reuters) -ICE cotton futures ticked up on Monday on mounting concerns over the natural fiber crop due to hot and dry weather in key growing areas, while also drawing support from gains in wider equities and grain markets.

* The most-active December cotton contract CTz3 gained 0.38 cent, or 0.5%, at 84.86 cents per lb by 10:51 a.m. EDT (1451 GMT). It traded in a range of 84.01 and 85.5 cents a lb.

* Weather is "the key to what's going on" in the cotton market, said Rogers Varner, president of Varner Brokerage, in Cleveland.

* The forecast for Lubbock, "which is in the middle of the most important production area in the world" continues to point to no rain, and "so the crop there is under stress," along with South Texas as well, Varner added.

* Cotton also drew support from gains in other agriculture markets, with Chicago wheat and corn rising after Russia attacked Ukrainian ports and grain infrastructure. GRA/

* Sentiment also got a fillip from an advance in Wall Street ahead of a rate decision from the Federal Reserve later this week. .N

* Oil prices rose on tightening supply and hopes for Chinese stimulus. O/R

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

* But limiting the upside momentum for cotton, the dollar index .DXY gained 0.2%, making the natural fiber less attractive to overseas buyers.

Reporting by Ananya Bajpai in Bengaluru; Editing by Shailesh Kuber