June 7 (Reuters) -ICE cotton futures fell on Friday and were headed for a second straight weekly loss as investors booked profits ahead of the weekend.

* Cotton contracts for July CTc1 fell 1.59 cents, or 2.11%, at 73.85 cents per lb by 1:19 p.m. ET (1719 GMT). The contract was down nearly 3% so far this week after falling over 5% in the previous week.

* The dollar index rose 0.8%, making cotton less attractive for overseas buyers.USD/

* "What you are currently seeing is profit-taking ... these are the last longs getting out of their positions from the last couple of days," said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago.

* Cotton futures rose for a third straight session on Thursday, buoyed by support from firmer oil prices and strong demand from top consumer China.COT/N

* "You have got chances of rain in West Texas again, and that is weighing on the new crop," said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

* Further pressurising the market, Chicago and Paris wheat futures extended losses to one-month lows as news of an import ban by Turkey weakened the demand outlook and eclipsed concerns over weather damage to crops in Russia. GRA/

* The U.S. Department of Agriculture's USDA weekly report on Thursday showed exports of 157,000 running bales (RB), down 9% from the previous week and 27% from the prior four-week average. EXP/COT

Reporting by Anushree Mukherjee in Bengaluru; Editing by Alan Barona