ICE cotton futures slipped from a six-month high on Thursday, as a weak export sales data and a stronger U.S. dollar dented investor sentiment.

* The most-active December cotton contract (CTZ3) fell 2.04 cents, or 2.32%, to 85.89 cents per lb by 11:01 a.m. EDT (1501 GMT), after hitting its highest since Jan. 26 earlier in the session.

* "Dollar is trading quite a bit stronger and might be adding a little bit of pressure on cotton prices," said Bailey Thomen, risk management consultant at StoneX Group.

* "We had our export sales report this morning for cotton and it was relatively weak and is somewhere pressuring prices today," Thomen added.

* The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales reductions of 18,700 RB for 2022/2023 were down noticeably from the previous week and from the prior four-week average.

* "Exports of 2,100 RB were down 15% from the previous week and 64% from the prior four-week average," the USDA report added.

* The dollar index DXY rose 0.8% to a more than a two-week high against its rivals, making cotton more expensive for other currency holders.

* Limiting the losses, Brent crude topped $84 a barrel for the first time since April. Higher oil prices make polyester, a cotton substitute, more expensive.

* Wall Street's main indexes surged on hopes that the Federal Reserve's policy tightening was ending and the world's largest economy was heading for a soft landing.

* In other agriculture markets, Chicago wheat futures edged higher, recouping some losses from the previous session as tightening supplies from the Black Sea region underpinned the market.