April 3 (Reuters) -ICE cotton futures slipped on Monday as weak risk appetite among investors in the wider financial markets seeped into the natural fiber overshadowing support from a softer dollar and strong oil prices.

* Cotton contracts for May CTc1 fell 0.66 cents, or 0.8%, to 82.12 cents per lb by 12:42 p.m. EDT (1642 GMT).

* The S&P 500 and the Nasdaq fell as rising oil prices rekindled concerns that the U.S. Federal Reserve will stick to its rate-hike campaign for longer to temper inflation. MKTS/GLOB

* "Part of the reason is because the market rallied almost 8 cents in a week. Mills all of a sudden have pulled back from buying... hoping the price will break a little more," said Rogers Varner, president of Varner Brokerage in Cleveland.

* "However, the outside markets are going to help cotton... eventually May (contract) will test that resistance at $0.89," Varner added.

* Last week, cotton prices climbed to their highest in over three weeks, mainly helped by declines in dollar. nL4N3623X6

* Oil prices jumped more than $4 a barrel. Higher oil prices make polyester, a cotton substitute, more expensive.

* The dollar index .DXY fell 0.7% against its rivals. A weaker dollar makes cotton less expensive for overseas buyers. USD/

* Meanwhile, Chicago soybean and corn futures rallied on to their highest in several weeks, supported by concerns over U.S. planting and a jump in crude oil. GRA/

Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber