Shipping Certificate

What is Shipping Certificate?

Shipping Certificate meaning A negotiable instrument used as the futures delivery instrument for certain physical commodities. The shipping certificate is issued by exchange-approved facilities and represents a commitment by the facility to deliver the commodity to the holder of the certificate under the terms specified therein. Unlike an issuer of a warehouse receipt, who has physical product in store, the issuer of a shipping certificate may honor its obligation from current production or through-put as well as from inventories.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary