Aug 23 (Reuters) - ICE cotton prices jumped higher on Wednesday to their highest level in almost two weeks on worries over potential damage to crops in South Texas due to Tropical Depression Harvey.

"The market is oversold and we've got a tropical depression that could turn into a hurricane and hit the Texas coast where there's a lot of open cotton ready to be harvested," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas. Harvey, formerly a tropical storm, has regenerated into a tropical depression and could strengthen further into a hurricane on Friday, the National Hurricane Center said.

Cotton contracts for December settled up 1.08 cent, or 1.59 percent, at 68.89 cents per lb. It traded within a range of 67.91 and 69.47 cents a lb, its highest level since Aug. 10.

Meanwhile, top producer India's rainfall deficit for the June-September monsoon season has widened to 6 percent as of Wednesday, the highest since the season's start on June 1, data compiled by India Meteorological Department (IMD) showed. The monsoon delivers about 70 percent of India's annual rainfall, critical for crops such as rice, cane, corn, cotton and soybeans because nearly half of the country's farmland lacks irrigation.

Total futures market volume rose by 11,669 to 24,080 lots. Data showed total open interest gained 756 to 226,101 contracts in the previous session Certificated cotton stocks deliverable as of Aug. 22 totaled 12,503 480-lb bales, down from 13,520 in the previous session. The dollar index was down 0.42 percent. The Thomson Reuters CoreCommodity CRB Index , which tracks 19 commodities, was up 0.48 percent.

(Reporting by Nithin Prasad in Bengaluru; Editing by Sandra Maler)