March 18 (Reuters) -U.S. cotton futures rose on Monday, buoyed by an upbeat industrial output and retail sales data from top consumer China, while a slightly higher dollar kept a lid on gains.

* Cotton contract for May CTc1 rose 1.01 cent, or about 1%, to 94.95 cents per lb by 12:03 p.m. ET (1603 GMT).

* "Improved Chinese economic news of retail sales and industrial production helped buoy the market," said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* China's factory output and retail sales beat expectations in the January-February period, marking a solid start for 2024.

* "US dollar has gone from lower to higher and that's starting to break the cotton market a little... We'll get the planning intentions for the new crop, which can affect July cotton somewhat," Brown added.

* The dollar index rose 0.1%, making the natural fibre more expensive for buyers overseas. USD/

* The U.S. Department of Agriculture (USDA) will release the planting intentions report on March 28.

* Support also spilled from the higher equities and oil markets into the natural fibre..N O/R

* Higher oil prices make cotton-substitute polyester more expensive.

* In the grains market, Chicago wheat and corn rose as Russia's weekend attacks on Ukrainian ports supported prices, however soybean edged lower. GRA/

Reporting by Rahul Paswan in Bengaluru;