In the context of futures contracts, it refers to a receipt or certificate issued by a warehouse to register delivery of a commodity. The warrant is an evidence that a producer has deposited a certain quantity of a crop or commodity with specific quality at the warehouse. The warrant can be used to obtain credit from local banks.

The warehouse may also buy the commodity from the local purchaser against an option to repurchase it in the near future (two months or less) at a bit lower price.

In this sense, this warrant differs in nature from warrants that give the holder the right to purchase a commodity at a set price over the course of the contract’s lifespan.