Feb 10 (Reuters) -ICE cotton futures edged lower on Friday as a stronger dollar made the natural fiber more expensive for other currency holders, while investors wait for more cues on the demand outlook, especially from top consumer China.

* The cotton contract for May CTc2 fell 0.2 cent, or 0.2%, to 85.3 cents per lb by 11:22 ET (1622 GMT).

* The contract has slipped about 0.6% so far this week.

* The dollar =USD rose 0.4% against a basket of other major currencies after University of Michigan surveys showed a one-year inflation outlook of 4.2%, higher than the final number in January.

* "We're seeing some long liquidation by speculators," said Jack Scoville, vice president at Chicago-based Price Futures Group adding that, "I expect a fairly choppy market as we move forward."

* "Even though the export sales were decent yesterday, we have to see that for several more weeks before the market will get really excited... we're looking for demand from key regions, which really hasn't shown up yet," Scoville added.

* The U.S. Department of Agriculture's (USDA) weekly export sales report on Thursday showed net sales of 262,800 running bales (RB) of cotton for 2022/2023, with increases primarily for China. EXP/COT

* Meanwhile, in the wider grains market Chicago soybean, corn and wheat futures edged higher. GRA/

Reporting by Rahul Paswan in Bengaluru; Editing by Kirsten Donovan