Jan 14 (Reuters) - ICE cotton futures fell on Tuesday due to a technical correction, while downbeat sentiment in oil and grains market also seeped into the natural fiber.

* Cotton contracts for March CTc1 fell 0.11 cent, or 0.16%, at 67.53 cents per lb at 10:47 a.m. ET (1547 GMT).

* "So we've had a little bit of a rally early in the first part of the session... it found a little bit of technical resistance (at 67.98 cents) and some selling pressure came in and then has pressured it back down," said Bailey Thomen, cotton risk management consultant at StoneX Group.

* Oil prices slipped on Tuesday from the previous day's four-month highs, but the market remained supported by continuing focus on the impact of new U.S. sanctions on Russian oil exports to key buyers India and China. O/R

* Lower oil prices make cotton-substitute polyester less expensive.

* Chicago corn and soybean futures edged lower on Tuesday, consolidating near multi-month highs sparked by smaller-than-expected government estimates of the U.S. harvest, while wheat also ticked lower. GRA/

* "I think cotton is cheap enough to inspire demand, and I see a little bit better price structure in the weeks to come," said Rogers Varner, president of Varner Brokerage.

* Cotton speculators increased their net short position by 404 contracts to 51,936 in the week to Jan. 7, CFTC data showed on Friday. CFTC/

(Reporting by Anmol Choubey in Bengaluru; Editing by Vijay Kishore)

((anmol.choubey@thomsonreuters.com;))