Aug 28 (Reuters) -ICE cotton futures slipped on Monday as concerns over demand from top consumer China dominated sentiment, offsetting support from a slight retreat in the dollar and strength in wider financial and commodities markets.

* The most-active December cotton contract CTZ3 fell 0.56 cents, or 0.6%, to 86.75 cents per lb at 11:56 a.m. EDT (1556 GMT), after hitting its highest since Aug. 11 at 87.84 cents earlier in the session.

* "China is buying a little bit. We need some bigger sales over there to really get cotton market going," said Jack Scoville, vice president at Chicago-based Price Futures Group.

* "We're approaching recent highs... speculators have also been liquidating positions and still fairly stressful weather out in Texas and that's still the main highlight," Scoville said.

* Last week, the U.S. Department of Agriculture's weekly export sales report showed net sales of 38,900 running bales (RB) for 2023/2024, lower than last week's net sales of 186,300 RB.[ EXP/COT]

* Profits at China's industrial firms fell 6.7% in July from a year earlier, extending this year's slump to a seventh month with weak demand squeezing companies as a post-pandemic recovery faltered in the world's second-biggest economy.

* Limiting losses, the dollar =USD fell 0.1% against its rivals. Oil prices edged higher after China took steps to bolster its flagging economy, making cotton-substitute polyester more expensive. USD/ US/

* Chicago soybeans and corn rose after a U.S. farm survey found that hot and dry weather stressed both crops. Wall Street's main indexes gained as a pullback in Treasury yields boosted megacap growth stocks. GRA/ N

* Meanwhile, speculators trimmed net short position by 6,042 contracts to 20,672 in the week to Aug. 22, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.

Reporting by Rahul Paswan and Brijesh Patel in Bengaluru; Editing by Devika Syamnath