ICE cotton futures inched higher on Wednesday, helped by a weaker U.S. dollar, while traders await key data releases later this week.

* Cotton contracts for March (CTH6) rose 0.03 cent, or 0.1%, to 64.6 cents per lb at 10:57 a.m. ET (15:57 GMT).

* The dollar slipped to an over one-month low, making greenback-priced cotton more affordable for foreign buyers.

* "Low 64s (cents) has attracted some fundamental buying, with a weaker USD lending support, while attempts to reach 65 are capped by farmer selling alongside algorithmic trading," said Valentin Olah, a risk management consultant at StoneX.

* Adding support, oil prices climbed almost 1%, driving cotton-alternative polyester prices higher, diminishing its appeal among buyers.

* "Complacency is the silent risk no one prices in, this market (cotton) can break out of this range at any point, the direction is unknown, but the industry is underhedged if this were to happen," Olah added.

* Data on Tuesday showed ICE cotton speculators trimmed their net short position by 2,480 contracts to 84,607 in the week to October 21.

* JP Morgan sees greater upside in ICE cotton no.2 futures contracts, with a forecast of 75 cents per pound for the fourth quarter of next year, the investment bank said in a note.

* Investors have now shifted their focus to the upcoming U.S. Department of Agriculture (USDA) reports, with the weekly export sales report for the week ended October 30 scheduled for release on Thursday and World Agricultural Supply and Demand Estimates (WASDE) report, due on December 9.

* In other grains markets, Chicago wheat futures edged down after the previous day's rally as traders watched to see if military escalation in the Black Sea would affect grain trade.