June 5 (Reuters) - ICE cotton futures fell on Monday on a stronger dollar and favorable conditions for planting of the natural fiber.

"Planting progress is very much on schedule across the Northern Hemisphere and the big U.S. acreage is viewed as in line with the five year average," O.A. Cleveland, consulting economist at Cotton Experts, wrote in a note. "The south plains of Texas continue to be marginally dry, but rainfall is advancing across most of the acreage."

The most-active December cotton contract on ICE futures U.S. settled down 0.51 cent, or 0.70 percent, at 72.61 cents per lb. It traded within a range of 72.43 and 73.28 cents a lb. The July cotton contract on ICE Futures U.S. fell half a percent to 76.31 cents per lb. Prices earlier touched a more than three-week low of 76.28 cents per lb.

"We don't think there is lot of interest from the speculators in getting long ... they may be liquidating but not exactly rolling," said Louis Rose, co-founder and director of research and analytics at Rose Commodity Group. Rose expects July prices to remain volatile ahead of the monthly World Agricultural Supply and Demand Estimates (WASDE) report due on Friday and the June acreage report to be released later this month. "There's not going be a lot of strong interest in buying or even selling. We may see some volatility and further liquidation from specs if they are not index buyers on July, ahead of these reports."

* The dollar index was up 0.10 percent. The Thomson Reuters CoreCommodity CRB Index , which tracks 19 commodities, was down 0.38 percent.
* Total futures market volume rose by 983 to 28,739 lots. Data showed total open interest fell 2,766 to 240,680 contracts in the previous session.
* Speculators cut a bullish stance in cotton by 8,566 lots to 88,575 lots in the week to May 30, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

(Reporting by Swati Verma in Bengaluru; Editing by Peter Cooney)