March 8 (Reuters) -ICE cotton futures slipped on Wednesday after the U.S. Department of Agriculture (USDA) raised its world ending stocks estimates, a negative sign for demand prospects for the natural fiber.

The cotton contract for May CTc2 fell 0.53 cent, or about 0.6%, to 82.24 cents per lb at 1:13 p.m. ET (1813 GMT).

In its March World Agricultural Supply and Demand Estimates (WASDE) report, the USDA raised its projection for world ending stocks for 2022/23 to 91.1 million bales, 2.1 million more than a month earlier and 5.0 million higher than in the prior year.

"World demand is probably still stated slightly too low, but it's been a tendency to be slightly more cautious earlier on in the season and have room to revise higher later on" said Louis Barbera, partner and analyst at VLM Commodities Ltd.

"$0.82 or lower we start to sell cotton, I think that's going to be the same thing again."

U.S. cotton supply and demand forecasts for 2022/23 were left unchanged this month.

In its previous monthly report, the USDA had raised its projection for U.S. ending stocks by 100,000 bales to 4.3 million bales, flagging lower mill usage.

The agency projected world 2022/23 consumption at 555,000 bales lower this month with reductions in Turkey, Pakistan, Indonesia, and Bangladesh.

"Production is more than 700,000 bales higher as larger expected crops in China, Australia, and Uzbekistan more than offset reduced prospects for India," the USDA added.

The dollar hit multi-month highs as Federal Reserve chair Jerome Powell put big rate hikes back on the table to tame inflation, making cotton more expensive for other currency holders.