The cache is not at the posted coordinates, but within 2 km.
The Hitch Hiker's Guide to the Galaxy has a few things to say on the subject of towels. A towel, it says, is about the most massively useful thing an interstellar hitch hiker can have. Partly it has great practical value - you can wrap it around you for warmth as you bound across the cold moons of Jaglan Beta; you can lie on it on the brilliant marble-sanded beaches of Santraginus V, inhaling the heady sea vapours; you can sleep under it beneath the stars which shine so redly on the desert world of Kakrafoon; use it to sail a mini raft down the slow heavy river Moth; wet it for use in hand-to- hand-combat; wrap it round your head to ward off noxious fumes or to avoid the gaze of the Ravenous Bugblatter Beast of Traal (a mindboggingly stupid animal, it assumes that if you can't see it, it can't see you - daft as a bush, but very ravenous); you can wave your towel in emergencies as a distress signal, and of course dry yourself off with it if it still seems to be clean enough.
More importantly, a towel has immense psychological value. For some reason, if a strag (strag: non-hitch hiker) discovers that a hitch hiker has his towel with him, he will automatically assume that he is also in possession of a toothbrush, face flannel, soap, tin of biscuits, flask, compass, map, ball of string, gnat spray, wet weather gear, space suit etc., etc. Furthermore, the strag will then happily lend the hitch hiker any of these or a dozen other items that the hitch hiker might accidentally have "lost". What the strag will think is that any man who can hitch the length and breadth of the galaxy, rough it, slum it, struggle against terrible odds, win through, and still knows where his towel is is clearly a man to be reckoned with.
Hence a phrase that has passed into hitchhiking slang, as in "Hey, you sass that hoopy Ford Prefect? There's a frood who really knows where his towel is."
Quoted from the guide
Towel Day is celebrated every May 25 as a tribute by fans of the late author Douglas Adams. On this day, fans carry a towel with them to demonstrate their love for the books and the author. The commemoration was first held in 2001, two weeks after Adams' death on May 11, 2001. The towel is a reference to Adams's popular science fiction comedy series The Hitchhiker's Guide to the Galaxy.
When you find your towel you will have found some co-ordinates, use the following to find the final cache co-ordinates:
The original cache contents: toothbrush and toothpaste, shampoo, shower cap, face flannel, soap, dental floss, pen, compass, flashlight, map, ball of string, bungee cord, drink cooler, gnat spray, wet weather gear, space suit (well not really). Oh, almost forgot, a log book and pen...
Subtract 3.407397 Decimal degrees from the first part of the FOUND co-ordinate.
Subtract 90.689263 Decimal degrees from the second part of the FOUND co-ordinate.
Please feel free to take any of these items or lend the next cacher any other items that the cacher might accidentally have "lost".
3 2 1 prizes (maps) in the cache for the First, Second and Third to find.
Congratulations to jodan for the solve and FTF.