UPDATE 1-U.S. natural gas prices drop 5% on smaller daily output decline, ample gas in storage

* Natural gas futures fall despite cooler weather forecasts * Waha Hub prices turn positive as some producers shut wells * Tropical storms unlikely to affect U.S. mainland (Adds latest prices) By Scott DiSavino Oct 8 (Reuters) – U.S. natural gas futures dropped about 5% on Wednesday on a smaller than previously forecast drop in output and ample supplies of gas in storage, prompting some traders to take profits after prices rose to an 11-week high in the prior session. Front-month gas futures for November delivery on the New York Mercantile Exchange fell 16.5 cents, or 4.7%, to settle at $3.333 per million British thermal units (mmBtu). On Tuesday, the contract closed at its highest since July 18. That price drop pushed the contract out of technically overbought territory. In the cash marke