What does Delivery Notice mean?
Delivery notice is given by short position holder / writer informing the clearing house about his intention to make the delivery of the commodity on a particular date for the settlement. It is also called Notice of Intent to Deliver.
Futures Knowledge Explains Delivery Notice
The delivery notice specifically describes the type, quantity of the delivering product. Since there are many varieties of similar commodities available in the market the delivery notice specifies about the product. For example, some decides to write a short contract for ABC variety of corn. Then in the delivery notice it needs to be specified that ABC variety of corn will be delivered on the specific date. Delivery notice is different from a warehouse receipt and does not amounts to transfer of tittle.