July 31 (Reuters) -ICE cotton futures fell nearly 2% on Wednesday, pressured by short selling after the market hit a one-week high in the last session, while weaker grains also weighed on the natural fiber.

* Cotton contracts for December CTZ4 fell 1.24 cent, or 1.8%, to 68.31 cents per lb at 11:22 a.m. EDT (1522 GMT).

* Cotton prices hit a one-week high on Tuesday at 70.20 cents. COT/N

* The market experienced a two-day rally on a technical correction, however, resistance at 70 cents pressured prices and today's quiet session suggests that price movement may be due to possible increased short selling, said Bailey Thomen, cotton risk management consultant at StoneX Group.

* Cotton speculators increased their net short position by 6,751 contracts to 51,241 in the week to July 23.CFTC/

* Elsewhere, Chicago soybean and corn futures ticked up but prices remained near their lowest since 2020 as favourable U.S. crop prospects weighed, while wheat edged down for a second session to also hover above its lowest since 2020. GRA/

* Meanwhile, China will issue 200,000 metric tons in sliding tariff rate cotton import quotas to non-state firms to meet the needs of the domestic textile industry.

* The announcement of import quota by China is expected to increase cotton imports and potentially support cotton prices, added Thomen.

Reporting by Anmol Choubey in Bengaluru; Editing by Shailesh Kuber