May 18 (Reuters) -ICE cotton futures edged lower on Thursday on weak export sales data and as the dollar scaled a seven-week peak.

* The most active first-month July cotton contract CTc1 fell 0.57 cent, or 0.7%, to 86.37 cents per lb by 11:21 a.m. EDT (1521 GMT).

* "The dollar is higher for one thing and the export sales report was weaker than we've seen in the last few weeks," said Jack Scoville, vice president at Chicago-based Price Futures Group.

* The U.S. Department of Agriculture's (USDA) report showed net sales of 132,400 running bales (RB) of cotton for 2022/2023, down 46% from the previous week and 28% from the prior four-week average. EXP/COT

* Exports of 332,700 RB were unchanged from the previous week, but down 7% from the prior four-week average, data showed.

* A stronger dollar also made the greenback-priced cotton less attractive, especially for overseas buyers. USD/

* Oil prices dipped as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling.

* Lower oil prices makes polyester, a cotton substitute, less expensive.

* Chicago corn futures slid as favorable weather boosted crops in the U.S. Midwest and heightened expectations for a bumper harvest this year, while soybean prices slumped to a 10-month low. GRA/

* Bangladesh has lifted requirement to fumigate cotton imports into the country from the U.S., likely "removing a significant export barrier", Cotton USA said in a release.

* Bangladesh was among the top 10 export markets for the U.S. cotton in 2022, with exports valued at $477.07 million, according to USDA data.

Reporting by Rahul Paswan in Bengaluru; Editing by Shilpi Majumdar