Oct 19 (Reuters) -ICE cotton futures were little changed on Thursday as a weaker dollar countered pressure from lacklustre weekly export sales.

* The cotton contract for December CTZ3 was flat at 84.17 cents per lb by 1:06 p.m. ET (1705 GMT) after falling more than 2% earlier in the session.

* The U.S. Department of Agriculture's weekly sales report showed net sales of 71,300 running bales of cotton for 2023/2024 were up 64% from the previous week but down 36% from the prior four-week average.

* The report also showed that exports were down 22% from the prior 4-week average.

* "The export sales data was not very good, that's why the market went down," said Peter Egli, director of risk management at British merchant Plexus Cotton.

* Limiting losses, the dollar index .DXY fell 0.2%, making cotton less expensive for other currency holders. USD/

* "If cotton prices go below the 80 cents range, then we might see more inquiries," added Egli.

* According to the U.S. drought monitor, 47% of the cotton production area is affected by drought as of Oct. 17.

* "Rains in eastern portions of the Southeast and West Texas will slow (cotton) harvesting a bit. However, drier weather in the Coastal Bend and Delta will favor harvesting there," weather forecaster Maxar wrote in a weekly note.

* In the grain market, wheat and corn edged lower as they faced chart resistance following a day-earlier rise. 

Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Sharon Singleton