Feb 29 (Reuters) -U.S. cotton futures fell on Thursday, slipping from an over one-year high hit in the previous session, as a federal report showing lower sales and weakness in the grains market weighed on the natural fiber market.

* Cotton contract for May CTc2 fell 1.89 cents, or 1.9%, to 99.19 centsper lb by 11:50 a.m. ET (1650 GMT). But, prices scaled their highest since September 2022 in the previous session and the contract was up 14% for the month.

* The U.S. Department of Agriculture (USDA) showed net sales of 40,000 running bales for 2023/2024 were down 69% from the previous week and 83% from the prior 4-week average. EXP/COT

* "The lousy export sales report, 40,000 running bales is not going to do the job," said Jack Scoville, vice president at Chicago-based Price Futures Group, adding that there isn't good demand for U.S. goods at the moment and that's impacting the market.

* The report also showed export sales of267,100 running bales were up 5% from the previous week, but down 9% from the prior 4-week average.

* Chicago soybean futures fell to a new three-year low, pressured by an advancing harvest in top producer Brazil and tepid U.S. exports.GRA/

* "There has been a bunch of wildfires down in Texas, and that has brought fears of planting problems," Scoville added.

* Texas Governor Greg Abbott on Tuesday issued a disaster declaration for 60 counties and directed the Texas Division of Emergency Management to activate more than 95 firefighters as well as personnel to close roads, control traffic, offer medical aid, and provide livestock support.

* Elsewhere, Australia could be heading for its third-warmest summer on record. It is now growing summer crops, such as sorghum and cotton, with planting of much larger crops of wheat, barley and canola set to begin around April and May.

Reporting by Anushree Mukherjee in Bengaluru; Editing by Shailesh Kuber