HIGHLIGHTS-Top trading houses speak at commodities conference

(Adds Cargill, ADM and Viterra comments)

By Julia Payne, Bozorgmehr Sharafedin, Noah Browning and Karl Plume

LONDON, June 16 (Reuters) - Executives from the world's largest trading houses and mining companies are discussing market trends at the FT Commodities Global Summit this week.

Following are highlights from Wednesday:

WILLIAM REED II, CEO OF CASTLETON COMMODITIES INTERNATIONAL

"You're seeing a recovery from COVID ... These (oil) prices of $60-$70 (a barrel) are not that shocking. We've been in that neighbourhood for quite a while, that's quite middle of the road."

An oil price supercycle was possible but unlikely, he said, adding that price volatility could become extreme, ranging from $35 to $130 with the energy transition.

On climate goals, immediate decarbonisation risked causing a collapse in the global economy, and was not possible or wise, he said.

Castleton would continue to focus on natural gas and power, he said, adding that it was working toward hydrogens and carbon capture technologies to make its business cleaner.

HANNAH HAUMAN, GLOBAL HEAD OF CARBON TRADING AT TRAFIGURA

"The largest, most liquid commodity is crude at 5 billion tonnes a year. Carbon is already the largest global commodity in the world with the potential to be 10 times the size of the crude market."

She said the industry risked "greenwashing" when it used carbon offset programmes that were based on average emissions for an oil product, while emissions in supply chains could vary by a factor of 10.

GIOVANNI SERIO, HEAD OF RESEARCH AT VITOL

"We've already been seeing for the past 10 years the centre of oil growth moving to emerging markets. This trend will be accelerated after COVID and with the energy transition."

He said China would drive electric vehicle (EV) growth but was also a big driver for other car sales. In India and Latin America, EV penetration would not be easy and the market for gasoline-fuelled cars would still grow.

"In the meantime, you have accelerated the trend of capital investment cuts in the oil industry."

"The next tension is going to be between (oil) supply coming down and demand coming down - and at this point it feels like the supply is taking the lead in terms of being cut."

He said jet fuel demand would catch up with pre-COVID levels at the end of 2022 or in 2023.

GUILLAUME VERMERSCH, CFO OF MERCURIA

"In the recovery phase at the macro economy level, we've seen banks actually coming back and redeploying the capital," he said, adding that some banks were "expressing a very strong commitment to support" the commodities sector.

CHRISTOPHE SALMON, CFO OF TRAFIGURA

Banks had shifted focus to larger commodities clients, he said, after a series of trading house defaults last year, mainly in Asia.

"We benefited from this trend because access to capital is more difficult for others ... We have increased our pool of funding by 10% year on year."

MURIEL SCHWAB, CFO OF GUNVOR

"We clearly see banks returning to the market, increasing their commitment to the large global commodity traders and supporting the needs for financing that increases with higher commodity prices ... Banks are becoming more selective."

"The banks are in a better place today than two years ago and are expected to continue to provide the liquidity that would be needed in that super cycle."

JEFFREY DELLAPINA, CFO OF VITOL

Vitol and others trading firms would play a role in filling the gap in oil upstream financing as big energy firms and banks look instead to renewable energy sources, he said.

"It will help but not fill the hole."

He said Vitol was expected to become more asset-heavy during the energy transition and did not expect banks to exert heavy pressure on energy firms to fulfill metrics on environmental, social and governance (ESG) issues.

SARAH BEHBEHANI, FOUNDER OF BENERGY CONSULTANCY

"LNG has a lot of support. China has been superseding any analyst expectation for LNG demand. Europe is coming from a very low inventory point," she said, adding that Europe was behind the rise in prices. "We have a lot of maintenance happening, a lot of outages because there was not enough maintenance during COVID. Prices will continue to be volatile," she said, adding that demand for LNG would stay strong during the energy transition.

ALEX SANFELIU, HEAD OF WORLD TRADING AT CARGILL

The surge in crop commodity prices has been driven by Chinese importing of feed grains and by demand for feedstocks to produce next-generation biofuels like renewable diesel, which are structural changes.

"I think we're in a super-cycle, but I don't think we're going to see 10 years or more (of above-trend prices). When you look at the demand growth we're having versus the supply response we're going to get ... (it might be) two to four years."

GARY MCGUIGAN, PRESIDENT OF GLOBAL TRADE AT ARCHER DANIELS MIDLAND (ADM)

"I think it's too early to say that we're in a mini super-cycle ... A lot of the demand has been driven by China with their restocking of commodities. But I do agree that demand dynamics are changing."

DAVID MATTISKE, CEO OF VITERRA

Food, feed and biofuel demand will require ever-increasing production, but that can be achieved with only minimal expansion of farmland.

"Our forecasts have most of the (crop) yield improvements coming from technologies ... Into 2030 and even 2050, we don't need a material increase in hectares to achieve the yield or the production requirements across the globe."

(Reporting by Julia Payne, Noah Browning, Bozorgmehr Sharafedin and Karl Plume in Chicago; Editing by Edmund Blair and Lisa Shumaker)

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