Why Is the Cost of Carry Component Less Influential for Near-Month Contracts?

The cost of carry component is less influential for near-month contracts because the time to expiration is short. The interest expense, storage costs, and other carrying costs are proportional to the time the asset must be held.

With less time remaining, the total accumulated cost of carry is smaller, and therefore, the futures price's deviation from the spot price due to cost of carry is also smaller. Arbitrage forces are also stronger as expiration nears.