Shipping Certificate

Definition

A negotiable instrument used by several futures exchanges as the futures delivery instrument for several commodities (e.g., soybean meal, plywood, and white wheat).

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.

Related Terms

Other terms related to 'Shipping Certificate' starting with the letter 'S'

Spread or Straddle, Systemic Risk, Speculator, Seller s Option, Systematic Risk

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