June 26 (Reuters) -ICE cotton futures slipped from a near one-month high on Wednesday, as a stronger US dollar made the natural fiber more expensive for other currency holders and dented demand.

* Cotton contracts for December CTZ4 shed 0.05 cent, or 0.07%, to 75.02 cents per lb at 1157 EDT (1557 GMT), after hitting its highest since May 31, earlier in the session.

* The dollar =USD rose 0.4% to a near two-month high against its rivals. USD/

* "You still have a big short position and we've seen some short covering on Monday and Tuesday that's helping push prices up," said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

* Cotton speculators increased the net short position by 8,194 contracts to 51,442 in the week to June 18. CFTC/

* The market is now awaiting the weekly U.S. Department of Agriculture's (USDA) export sales report due on Thursday, which last week showed exports at 197,900 running bales (RB). EXP/COT

* The weather guides are holding the cards right now for us here in the US as well as other places too... and you've got USDA acre number coming out on Friday and people are wondering what that's going to be and that may be supportive, Nunn added.

* USDA's annual acreage report is set to be released at noon EDT (1600 GMT) on Friday, June 28.

* Extending support to cotton, Chicago wheat bounced back, while corn and soybeans gained ground as the market assessed the impact of floods on crops in the U.S. Midwest.GRA/

Reporting by Rahul Paswan and Anmol Choubey in Bengaluru; Editing by Shailesh Kuber