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It’s right in your title:
predicted low
Predictions are not guaranteed to occur, thats why they call it a prediction and not a prophecy.
true but shouldn’t the low be updated with current observations?
Not when it’s early morning. The temperature is on the rise from the previous night. The prediction you’re seeing is for the coming night.
My regional temp estimates are far enough away for a few degrees difference as I am closer to a large body of water. In my case it is only a couple of miles/few kilometers distance for that variation.