UPDATE 1-Norbert weakens but still hurricane off Mexico coast

(Adds downgrade of hurricane and formation of new storm)

MEXICO CITY, Oct 9 (Reuters) - Hurricane Norbert further weakened to a Category 1 storm in the Pacific but was still a major tempest as it headed on Thursday for Mexico's Baja California peninsula, the U.S. National Hurricane Center said.

Norbert maximum sustained winds decreased to 90 miles per hour (150 km per hour) and could weaken even more on Friday.

The hurricane is expected to make landfall north of the city of La Paz over the weekend, likely missing a direct hit on the beach resort of Los Cabos, a popular destination for U.S. tourists.

Norbert could pummel into the agricultural states of Sonora and Sinaloa early on Sunday with heavy rains, but was not expected to cause any damage to mining interests in northern Mexico.

There are no oil installations either off the coast or on land.

Meanwhile, Tropical Storm Odile formed south of Norbert in the Pacific on Thursday, threatening to dump up to 8 inches (20 cm) of rains on parts of Guatemala and southern Mexico, putting the region at risk of flash floods or mudslides.

"On this track the center of the storm should move parallel to, but offshore of, the coast of southern Mexico for the next couple of days," the center said of Odile in a statement.

Odile's winds reached near 50 miles per hour (85 km per hour) and is forecasted to become a hurricane soon.