June 21 (Reuters) -ICE cotton futures inched lower on Wednesday, pressured by downbeat sentiment in the wider equities market, although a pullback in the dollar limited losses.

* The most-active December cotton contract CTz3 fell 0.76 cent, or 0.9%, to 79.94 cents per lb, by 11:07 a.m. EDT (1507 GMT). It traded in a range of 79.8 and 81.04 cents a lb.

* Wall Street's main indexes fell as Federal Reserve Chair Jerome Powell remained firm in bringing inflation back to 2% target, spurring worries of more monetary tightening. .N

* "Equities are down after Powell's speech, which is negative for cotton prices. There is no enthusiasm in the cotton market, so it will continue to trade sideways in the near term," said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* The U.S. dollar .DXY was down 0.2%, making the commodity more appealing to buyers holding other currencies. USD/

* "Also, the July contract is going into delivery soon. There are still some farmers that haven't fixed last year's crop, so some are certainly ignoring the new crop," Brown added.

* The U.S. Department of Agriculture (USDA) in a weekly crop progress report on Tuesday showed 89% of U.S. cotton was planted in the week ended June 18 compared with 81% a week ago.

* The report also noted that 47% of cotton was in good-excellent condition versus 49% a week ago.

* While in the grains market, corn rose over 3% as dry conditions in key areas of the U.S. Midwest raised supply concerns and prompted heavy buying, while wheat hit a two-month high.

Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shilpi Majumdar