ICE cotton futures extended their slide for a second straight session on Wednesday on concerns over demand from key buyer China and a strong dollar.

* Cotton contracts for December (CTZ3) fell 1.61 cents, or 1.8%, to 87.15 cents per lb by 12:57 p.m EDT (16:57 GMT).

* The dollar rose on lower risk appetite, hitting a fresh six-month peak and making cotton more expensive for overseas buyers.

* A dip in equities ahead of key data from the Federal Reserve also pressured cotton.

* Bearish economic data from China, the top buyer of U.S. cotton, and a rising dollar are proving to be a "double whammy" for cotton, said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* Cotton dipped over 3% on Tuesday, pressured by a stronger dollar and investors booking profits after the natural fiber hit a 13-month high on Friday last week.

* Meanwhile, the U.S. Department of Agriculture (USDA), in a weekly crop progress report said 31% of the cotton crop was in good to excellent condition, down from 33% last week.