Aug 13 (Reuters) -ICE cotton futures fell on Tuesday, dragged down by favourable weather conditions in key growing areas and lower crude oil prices, while downbeat sentiment in the grains also weighed on the natural fiber.

* Cotton contracts for December CTZ4 fell 0.66 cent, or 0.96%, to 68.41 cents per lb at 11:41 a.m. EDT (1541 GMT).

* "The weather has been awfully good and I think we've got a pretty good crop coming and even though the numbers on the WASDE report were friendly but there's still a big carry out," said Rogers Varner, president of Varner Brokerage in Cleveland.

* "Cotton has been a pretty good follower of the crude market and it is down today after a big day," said Varner, adding the market is likely to be stuck in a tight range in the immediate future.

* Cotton prices hit a near three-week high in the previous session after the U.S. Department of Agriculture (USDA) lowered U.S. and global production and ended stock estimates for the 2024/25 crop year in its monthly supply-demand report.

* In a weekly crop progress report on Monday, the USDA said 46% of the cotton crop was in good-to-excellent condition, compared with 45% a week ago.

* Pressurizing the natural fiber, oil prices dipped on Tuesday after five straight sessions of gains making cotton-substitute polyester less expensive. O/R

* Chicago soybean prices hit a four-year low due to an anticipated bumper U.S. harvest, while corn prices dropped slightly due to favorable crop ratings and wheat prices fell because of competition from cheaper Black Sea supplies and a modest Egyptian purchase. GRA/

Reporting by Anmol Choubey in Bengaluru; Editing by Vijay Kishore