July 25 (Reuters) -ICE cotton futures extended gains to a more than five-month high on Tuesday, as concerns prevailed that hot weather in key growing region Texas could hamper the natural fiber crop.

* The most-active December cotton contract CTZ3 rose 0.78 cents, or 0.92%, to 85.94 cents per lb by 12:28 p.m. EDT (1628 GMT). It traded in a range of 84.89 to 85.94 cents a lb.

* The weather in Texas is very hot and that is keeping the cotton prices high, said Jack Scoville, vice president at Chicago-based Price Futures Group.

* "There is optimism for more demand as the U.S. economy is doing better and ... global economy is improving as well," Scoville added.

* Cotton also drew some support from gains in Wall Street after a slew of companies forecast upbeat annual profits. .N

* Sentiment got a further fillip from oil hovering near three-month highs on signs of tighter supplies and pledges by Chinese authorities on fresh economic stimulus. O/R

* Higher oil prices make polyester, a cotton substitute, more expensive.

* Cotton's advance came despite a higher dollar, which makes it less appealing to other currency holders. .DXY USD/

* In other agriculture markets, Chicago wheat futures fell, after Russia's attacks on Ukrainian ports and grain infrastructure sparked concerns about long-term global supplies. GRA/

Reporting by Ananya Bajpai in Bengaluru; Editing by Krishna Chandra Eluri