They admit to a bug though on their support site.  And yes it may not be 
effecting everyone.  I think it might have something to do with having a 
Google+ account or other similar accounts available as an optional login.

On 05/24/2013 03:26 PM, authfriend wrote:
> I read Yahoo News regularly, and they haven't been getting
> my location wrong.
> --- In, Bhairitu <noozguru@...> wrote:
>> If you happen to read Yahoo News you may have noticed that for some time
>> now Yahoo can't seem to keep your selections for location in place.
>> Right now logging in it shows Los Angeles for news and Westlake, Oregon
>> for weather.  It had something else when I logged in this morning.  All
>> along I show my account logged in which of course includes my location.
>> If you set these locations it may stick around for a day but not be
>> there the next day.  Cookie problem?
>> So why can't Yahoo get it straight.  It ain't my browser because when I
>> did a search this problem has been around the last few months for about
>> everyone.  No wonder we see stupid stuff on Yahoo Groups. Must be those
>> "golden geese" they hired.  Or is Merissa Mayer going to be Yahoo's
>> Carly Fiorina?

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