Table of Contents

FORM10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,D.C. 20549

(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

OR ( ) TRANSITIONREPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGEACT OF 1934

For the Quarter endedJune 30, 2006

Commission File Number0-50736

SALOMON SMITH BARNEY FAIRFIELDFUTURES FUND L.P.

|  |
|--|
|  |  |
|  |

(Exactname of registrant as specified in its charter)

|                                |  |  |                    |
|--------------------------------|--|--|--------------------|
| NewYork                        |  |  | 04-3621353         |
| (State or otherjurisdiction of |  |  | (I.R.S. Employer   |
| incorporation or organization) |  |  | IdentificationNo.) |
|                                |

c/o Citigroup Managed Futures LLC 731Lexington Avenue – 25th Fl. New York, New York10022

|  |
|--|
|  |  |
|  |

(Address and ZipCode of principal executive offices)

(212)559-2011

|  |
|--|
|  |  |
|  |

(Registrant'stelephone number, including area code)

Indicate by checkmark whether the registrant (1) has filed all reports required to befiled by Section 13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subjectto such filing requirements for the past 90 days.

YesX     No     

Indicate by checkmark whether the registrant is a large accelerated filer, anaccelerated filer or a non-accelerated filer. See definition of‘‘accelerated filer and large acceleratedfiler’’ in Rule 12b-2 of the Exchange Act. (Checkone):

Large accelerated filer        Accelerated filer         Non-accelerated filer X

Indicate by checkmark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act).

Yes        No X

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Table of Contents

SALOMON SMITH BARNEYFAIRFIELD FUTURES FUND L.P.

FORM 10-Q

INDEX

|                                                        |  |  |                                                                                                                          |  |  |              |
|--------------------------------------------------------|--|--|--------------------------------------------------------------------------------------------------------------------------|--|--|--------------|
|                                                   |  |  |                                                                                                                     |  |  | PageNumber   |
| PARTI - Financial Information:                         |  |  |                                                                                                                     |
|         Item1. |  |  | FinancialStatements:                                                                                                     |  |  |         |
|                                                   |  |  | Statements of FinancialConditionat June 30, 2006 and December 31,2005(unaudited).                                        |  |  | 3            |
|                                                   |  |  | CondensedSchedules of Investmentsat June 30, 2006 and December 31,2005(unaudited).                                       |  |  | 4 –5   |
|                                                   |  |  | Statements of Income and ExpensesandPartners' Capital for the three and sixmonths ended June 30,2006 and2005(unaudited). |  |  | 6            |
|                                                   |  |  | Statementsof Cash Flows for the three and six months ended June 30, 2006 and2005(unaudited).                             |  |  | 7            |
|                                                   |  |  | Notes toFinancial Statements(unaudited).                                                                                 |  |  | 8 –11  |
|         Item2. |  |  | Management's Discussion andAnalysis of FinancialConditionand Results ofOperations.                                       |  |  | 12 –14 |
|         Item3. |  |  | Quantitative and QualitativeDisclosures about MarketRisk                                                                 |  |  | 15           |
|         Item4. |  |  | Controls andProcedures.                                                                                                  |  |  | 16           |
| PARTII - OtherInformation                              |  |  | 17                                                                                                                       |
|                                                        |

2

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Table of Contents

PART I

Item1.    Financial Statements

Salomon Smith Barney FairfieldFutures Fund L.P.Statements of FinancialCondition(Unaudited)

|                                                                                                                                         |  |  |             |   |            |                 |  |  |  |   |            |  |
|-----------------------------------------------------------------------------------------------------------------------------------------|--|--|-------------|---|------------|-----------------|--|--|--|---|------------|--|
|                                                                                                                                    |  |  | June30,2006 |   |            | December31,2005 |
| Assets:                                                                                                                                 |  |  |             |   |       |                 |  |  |  |   |       |  |
| Equityin commodity futures tradingaccount:                                                                                              |  |  |             |   |       |                 |  |  |  |   |       |  |
| Cash (Restricted$2,732,307 and $6,668,033 in 2006 and 2005,respectively)                                                                |  |  |             | $ | 60,281,839 |                 |  |  |  | $ | 73,279,574 |  |
| Net unrealized appreciation on open futurespositions                                                                                    |  |  |             |   | 468,560    |                 |  |  |  |   | —    |  |
| Unrealized appreciation on open forwardcontracts                                                                                        |  |  |             |   | 995,851    |                 |  |  |  |   | 2,834,674  |  |
|                                                                                                                                    |  |  |             |   | 61,746,250 |                 |  |  |  |   | 76,114,248 |  |
| Interestreceivable                                                                                                                      |  |  |             |   | 61,959     |                 |  |  |  |   | 28,843     |  |
|                                                                                                                                    |  |  |             | $ | 61,808,209 |                 |  |  |  | $ | 76,143,091 |  |
| Liabilities andPartners'Capital:                                                                                                        |  |  |             |   |       |                 |  |  |  |   |       |  |
| Liabilities:                                                                                                                            |  |  |             |   |       |                 |  |  |  |   |       |  |
| Netunrealized depreciation on open futures contracts                                                                                    |  |  |             | $ | —    |                 |  |  |  | $ | 142,543    |  |
| Unrealized depreciation on openforwards contracts                                                                                       |  |  |             |   | 958,499    |                 |  |  |  |   | 2,138,247  |  |
| Accruedexpenses:                                                                                                                        |  |  |             |   |       |                 |  |  |  |   |       |  |
| Brokeragecommissions                                                                                                                    |  |  |             |   | 228,186    |                 |  |  |  |   | 282,296    |  |
| Management fees                                                                                                                         |  |  |             |   | 100,915    |                 |  |  |  |   | 124,908    |  |
| Administrativefees                                                                                                                      |  |  |             |   | 25,229     |                 |  |  |  |   | 31,227     |  |
| Other                                                                                                                                   |  |  |             |   | 72,786     |                 |  |  |  |   | 45,246     |  |
| Redemptionspayable                                                                                                                      |  |  |             |   | 1,433,478  |                 |  |  |  |   | 3,652,070  |  |
|                                                                                                                                    |  |  |             |   | 2,819,093  |                 |  |  |  |   | 6,416,537  |  |
| Partners'Capital:                                                                                                                       |  |  |             |   |       |                 |  |  |  |   |       |  |
| General Partner,864.9335 Unit equivalents outstanding in 2006 and2005                                                                   |  |  |             |   | 1,239,112  |                 |  |  |  |   | 1,203,434  |  |
| Limited Partners, 40,311.0802 and 49,249.2016 RedeemableUnits of Limited Partnership Interest outstanding in 2006 and 2005,respectively |  |  |             |   | 57,750,004 |                 |  |  |  |   | 68,523,120 |  |
|                                                                                                                                    |  |  |             |   |       |                 |  |  |  |   |       |  |
|                                                                                                                                    |  |  |             |   | 58,989,116 |                 |  |  |  |   | 69,726,554 |  |
|                                                                                                                                    |  |  |             |   |       |                 |  |  |  |   |       |  |
|                                                                                                                                    |  |  |             | $ | 61,808,209 |                 |  |  |  | $ | 76,143,091 |  |
|                                                                                                                                         |

See accompanyingNotes to Financial Statements.

3

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Table of Contents

Salomon Smith Barney Fairfield FuturesFund L.P.Condensed Schedule of InvestmentsJune 30,2006(Unaudited)

|                                                  |  |  |           |   |          |                      |  |  |  |  |        |    |
|--------------------------------------------------|--|--|-----------|---|----------|----------------------|--|--|--|--|--------|----|
|                                             |  |  | FairValue |   |          | % ofPartners'Capital |
| FuturesContractsPurchased                        |  |  |           |   |     |                      |  |  |  |  |   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Energy                                           |  |  |           | $ | 34,660   |                      |  |  |  |  | 0.06   | %  |
| Grains                                           |  |  |           |   | 24,081   |                      |  |  |  |  | 0.04   |    |
| Indices                                          |  |  |           |   | 59,847   |                      |  |  |  |  | 0.10   |    |
| Softs                                            |  |  |           |   | 1,546    |                      |  |  |  |  | 0.00   | *  |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Totalfutures contractspurchased                  |  |  |           |   | 120,134  |                      |  |  |  |  | 0.20   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| FuturesContractsSold                             |  |  |           |   |     |                      |  |  |  |  |   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Energy                                           |  |  |           |   | 77,762   |                      |  |  |  |  | 0.13   |    |
| Grains                                           |  |  |           |   | (3,110   | )                    |  |  |  |  | (0.00  | )* |
| Indices                                          |  |  |           |   | 996      |                      |  |  |  |  | 0.00   | *  |
| InterestRates U.S.                               |  |  |           |   | 58,255   |                      |  |  |  |  | 0.10   |    |
| InterestRatesNon-U.S.                            |  |  |           |   | 108,555  |                      |  |  |  |  | 0.18   |    |
| Softs                                            |  |  |           |   | 105,968  |                      |  |  |  |  | 0.18   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Totalfutures contractssold                       |  |  |           |   | 348,426  |                      |  |  |  |  | 0.59   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| UnrealizedAppreciation on ForwardContracts       |  |  |           |   |     |                      |  |  |  |  |   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Currencies                                       |  |  |           |   | 995,851  |                      |  |  |  |  | 1.69   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Totalunrealized appreciation on forwardcontracts |  |  |           |   | 995,851  |                      |  |  |  |  | 1.69   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| UnrealizedDepreciation on ForwardContracts       |  |  |           |   |     |                      |  |  |  |  |   |    |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Currencies                                       |  |  |           |   | (947,099 | )                    |  |  |  |  | (1.60  | )  |
| Metals                                           |  |  |           |   | (11,400  | )                    |  |  |  |  | (0.02  | )  |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Totalunrealized depreciation on forwardcontracts |  |  |           |   | (958,499 | )                    |  |  |  |  | (1.62  | )  |
|                                             |  |  |           |   |     |                      |  |  |  |  |   |    |
| Totalfairvalue                                   |  |  |           | $ | 505,912  |                      |  |  |  |  | 0.86   | %  |
|                                                  |

|  |                                                                      |
|--|----------------------------------------------------------------------|
|  | Percentagesare based on Partners' Capital unless otherwiseindicated. |

|   |                |
|---|----------------|
| * | Due torounding |

See accompanying Notes to FinancialStatements.

4

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Table of Contents

Salomon Smith Barney Fairfield FuturesFund L.P.Condensed Schedule of InvestmentsDecember 31,2005(Unaudited)

|                                                  |  |  |            |   |            |                      |  |  |  |  |        |   |
|--------------------------------------------------|--|--|------------|---|------------|----------------------|--|--|--|--|--------|---|
|                                             |  |  | Fair Value |   |            | % ofPartners'Capital |
| FuturesContractsPurchased                        |  |  |            |   |       |                      |  |  |  |  |   |   |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Energy                                           |  |  |            | $ | 37,644     |                      |  |  |  |  | 0.05   | % |
| Grains                                           |  |  |            |   | (3,900     | )                    |  |  |  |  | (0.01  | ) |
| Indices                                          |  |  |            |   | 87,398     |                      |  |  |  |  | 0.13   |   |
| InterestRatesNon-U.S.                            |  |  |            |   | 127,540    |                      |  |  |  |  | 0.18   |   |
| Softs                                            |  |  |            |   | 27,082     |                      |  |  |  |  | 0.04   |   |
| Metals                                           |  |  |            |   | 1,140      |                      |  |  |  |  | 0.00   | * |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Totalfutures contractspurchased                  |  |  |            |   | 276,904    |                      |  |  |  |  | 0.39   |   |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| FuturesContractsSold                             |  |  |            |   |       |                      |  |  |  |  |   |   |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Energy                                           |  |  |            |   | 25,660     |                      |  |  |  |  | 0.04   |   |
| Grains                                           |  |  |            |   | (45,605    | )                    |  |  |  |  | (0.07  | ) |
| Indices                                          |  |  |            |   | 10,035     |                      |  |  |  |  | 0.01   |   |
| InterestRates U.S.                               |  |  |            |   | (365,184   | )                    |  |  |  |  | (0.52  | ) |
| InterestRatesNon-U.S.                            |  |  |            |   | 25,874     |                      |  |  |  |  | 0.04   |   |
| Softs                                            |  |  |            |   | (70,227    | )                    |  |  |  |  | (0.10  | ) |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Totalfutures contractssold                       |  |  |            |   | (419,447   | )                    |  |  |  |  | (0.60  | ) |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| UnrealizedAppreciation on ForwardContracts       |  |  |            |   |       |                      |  |  |  |  |   |   |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Currencies                                       |  |  |            |   | 1,186,790  |                      |  |  |  |  | 1.70   |   |
| Metals                                           |  |  |            |   | 1,647,884  |                      |  |  |  |  | 2.37   |   |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Totalunrealized appreciation on forwardcontracts |  |  |            |   | 2,834,674  |                      |  |  |  |  | 4.07   |   |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| UnrealizedDepreciation on ForwardContracts       |  |  |            |   |       |                      |  |  |  |  |   |   |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Currencies                                       |  |  |            |   | (1,046,650 | )                    |  |  |  |  | (1.50  | ) |
| Metals                                           |  |  |            |   | (1,091,597 | )                    |  |  |  |  | (1.57  | ) |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Totalunrealized depreciation on forwardcontracts |  |  |            |   | (2,138,247 | )                    |  |  |  |  | (3.07  | ) |
|                                             |  |  |            |   |       |                      |  |  |  |  |   |   |
| Totalfairvalue                                   |  |  |            | $ | 553,884    |                      |  |  |  |  | 0.79   | % |
|                                                  |

Percentagesare based on Partners' Capital unless otherwiseindicated.

|   |                 |
|---|-----------------|
| * | Due to rounding |

See accompanying Notes to FinancialStatements.

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Table of Contents

Salomon Smith Barney Fairfield FuturesFund L.P.Statements of Income and Expenses and Partners'Capital(Unaudited)

|                                                                                                                                      |  |  |                           |   |            |                         |  |  |      |   |             |      |  |  |  |   |             |   |  |  |  |   |             |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--|--|---------------------------|---|------------|-------------------------|--|--|------|---|-------------|------|--|--|--|---|-------------|---|--|--|--|---|-------------|---|
|                                                                                                                                 |  |  | ThreeMonths EndedJune 30, |   |            | Six Months EndedJune30, |
|                                                                                                                                 |  |  | 2006                      |   |            | 2005                    |  |  | 2006 |   |             | 2005 |
| Income:                                                                                                                              |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Netgains (losses) on trading of commodityinterests:                                                                                  |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Realized gains(losses) on closed positions                                                                                           |  |  |                           | $ | 3,241,012  |                         |  |  |      | $ | (12,720,934 | )    |  |  |  | $ | 3,399,206   |   |  |  |  | $ | (27,373,307 | ) |
| Change in unrealized gains (losses) on openpositions                                                                                 |  |  |                           |   | (1,566,559 | )                       |  |  |      |   | 9,439,759   |      |  |  |  |   | (47,972     | ) |  |  |  |   | 4,396,763   |   |
|                                                                                                                                 |  |  |                           |   | 1,674,453  |                         |  |  |      |   | (3,281,175  | )    |  |  |  |   | 3,351,234   |   |  |  |  |   | (22,976,544 | ) |
| Interestincome                                                                                                                       |  |  |                           |   | 607,754    |                         |  |  |      |   | 504,421     |      |  |  |  |   | 1,201,167   |   |  |  |  |   | 1,038,875   |   |
|                                                                                                                                 |  |  |                           |   | 2,282,207  |                         |  |  |      |   | (2,776,754  | )    |  |  |  |   | 4,552,401   |   |  |  |  |   | (21,937,669 | ) |
|                                                                                                                                 |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Expenses:                                                                                                                            |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Brokeragecommissions including clearing fees of $40,863, $20,758, $77,167, and$57,629, respectively                           |  |  |                           |   | 782,743    |                         |  |  |      |   | 1,120,008   |      |  |  |  |   | 1,619,858   |   |  |  |  |   | 2,463,266   |   |
| Managementfees                                                                                                                       |  |  |                           |   | 319,118    |                         |  |  |      |   | 441,308     |      |  |  |  |   | 662,785     |   |  |  |  |   | 969,881     |   |
| Administrativefees                                                                                                                   |  |  |                           |   | 79,780     |                         |  |  |      |   | 110,327     |      |  |  |  |   | 165,697     |   |  |  |  |   | 242,471     |   |
| Other                                                                                                                                |  |  |                           |   | 28,310     |                         |  |  |      |   | 30,666      |      |  |  |  |   | 57,685      |   |  |  |  |   | 61,666      |   |
|                                                                                                                                 |  |  |                           |   | 1,209,951  |                         |  |  |      |   | 1,702,309   |      |  |  |  |   | 2,506,025   |   |  |  |  |   | 3,737,284   |   |
| Netincome(loss)                                                                                                                      |  |  |                           |   | 1,072,256  |                         |  |  |      |   | (4,479,063  | )    |  |  |  |   | 2,046,376   |   |  |  |  |   | (25,674,953 | ) |
| Redemptions—LimitedPartners                                                                                                    |  |  |                           |   | (5,647,025 | )                       |  |  |      |   | (8,020,351  | )    |  |  |  |   | (12,783,814 | ) |  |  |  |   | (12,151,810 | ) |
| Netdecrease in Partners'Capital                                                                                                      |  |  |                           |   | (4,574,769 | )                       |  |  |      |   | (12,499,414 | )    |  |  |  |   | (10,737,438 | ) |  |  |  |   | (37,826,763 | ) |
| Partners'Capital, beginning ofperiod                                                                                                 |  |  |                           |   | 63,563,885 |                         |  |  |      |   | 100,043,337 |      |  |  |  |   | 69,726,554  |   |  |  |  |   | 125,370,686 |   |
| Partners'Capital, end ofperiod                                                                                                       |  |  |                           | $ | 58,989,116 |                         |  |  |      | $ | 87,543,923  |      |  |  |  | $ | 58,989,116  |   |  |  |  | $ | 87,543,923  |   |
| Netasset value per Redeemable Unit (41,176.0137 and 62,260.7184 RedeemableUnits outstanding at June  30, 2006 and 2005,respectively) |  |  |                           | $ | 1,432.61   |                         |  |  |      | $ | 1,406.09    |      |  |  |  | $ | 1,432.61    |   |  |  |  | $ | 1,406.09    |   |
| Netgain (loss) per Redeemable Unit of Limited Partnership Interest andGeneral Partner Unitequivalent                                 |  |  |                           | $ | 21.09      |                         |  |  |      |   | (58.18      | )    |  |  |  | $ | 41.25       |   |  |  |  | $ | (357.99     | ) |
|                                                                                                                                      |

Seeaccompanying Notes to Financial Statements.

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Salomon Smith Barney Fairfield FuturesFund L.P.Statements of CashFlows(Unaudited)

|                                                                                                   |  |  |                           |   |            |                         |  |  |      |   |             |      |  |  |  |   |             |   |  |  |  |   |             |   |
|---------------------------------------------------------------------------------------------------|--|--|---------------------------|---|------------|-------------------------|--|--|------|---|-------------|------|--|--|--|---|-------------|---|--|--|--|---|-------------|---|
|                                                                                              |  |  | ThreeMonths EndedJune 30, |   |            | Six Months EndedJune30, |
|                                                                                              |  |  | 2006                      |   |            | 2005                    |  |  | 2006 |   |             | 2005 |
| Cashflows from operatingactivities:                                                               |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Net income(loss)                                                                                  |  |  |                           | $ | 1,072,256  |                         |  |  |      | $ | (4,479,063  | )    |  |  |  | $ | 2,046,376   |   |  |  |  | $ | (25,674,953 | ) |
| Adjustmentsto reconcile net income (loss) to net cash provided by (used  in)operating activities: |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Changes inoperating assets and liabilities:                                                       |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| (Increase)decrease in restrictedcash                                                              |  |  |                           |   | 9,470,915  |                         |  |  |      |   | (2,290,302  | )    |  |  |  |   | 3,935,726   |   |  |  |  |   | 12,268,329  |   |
| (Increase)decrease in net unrealized appreciation on open futurespositions                        |  |  |                           |   | 1,963,497  |                         |  |  |      |   | (3,872,573  | )    |  |  |  |   | (468,560    | ) |  |  |  |   | (935,732    | ) |
| (Increase)decrease in unrealized appreciation on open forwardcontracts                            |  |  |                           |   | 913,095    |                         |  |  |      |   | (2,499,838  | )    |  |  |  |   | 1,838,823   |   |  |  |  |   | 1,114,299   |   |
| (Increase)decrease in interestreceivable                                                          |  |  |                           |   | 8,872      |                         |  |  |      |   | 13,121      |      |  |  |  |   | (33,116     | ) |  |  |  |   | (29,952     | ) |
| Increase(decrease) in unrealized depreciation on open futurescontracts                            |  |  |                           |   | —    |                         |  |  |      |   | (2,778,662  | )    |  |  |  |   | (142,543    | ) |  |  |  |   | —     |   |
| Increase(decrease) in unrealized depreciation on open forwardcontracts                            |  |  |                           |   | (1,310,033 | )                       |  |  |      |   | (288,686    | )    |  |  |  |   | (1,179,748  | ) |  |  |  |   | (4,575,330  | ) |
| Accruedexpenses:                                                                                  |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Increase (decrease) in brokeragecommissions                                                       |  |  |                           |   | (26,383    | )                       |  |  |      |   | (63,191     | )    |  |  |  |   | (54,110     | ) |  |  |  |   | (169,663    | ) |
| Increase(decrease) in managementfees                                                              |  |  |                           |   | (11,678    | )                       |  |  |      |   | (27,935     | )    |  |  |  |   | (23,993     | ) |  |  |  |   | (75,130     | ) |
| Increase(decrease) in administrativefees                                                          |  |  |                           |   | (2,919     | )                       |  |  |      |   | (6,984      | )    |  |  |  |   | (5,998      | ) |  |  |  |   | (18,783     | ) |
| Increase(decrease) inother                                                                        |  |  |                           |   | (1,835     | )                       |  |  |      |   | (12,551     | )    |  |  |  |   | 27,540      |   |  |  |  |   | 18,449      |   |
| Netcash provided by (used in) operatingactivities                                                 |  |  |                           |   | 12,075,787 |                         |  |  |      |   | (16,306,664 | )    |  |  |  |   | 5,940,397   |   |  |  |  |   | (18,078,466 | ) |
| Cashflows from financing activities:                                                              |  |  |                           |   |       |                         |  |  |      |   |        |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Payments forredemptions—LimitedPartners                                                     |  |  |                           |   | (8,064,809 | )                       |  |  |      |   | (9,072,519  | )    |  |  |  |   | (15,002,406 | ) |  |  |  |   | (15,957,880 | ) |
| Netchange incash                                                                                  |  |  |                           |   | 4,010,978  |                         |  |  |      |   | (25,379,183 | )    |  |  |  |   | (9,062,009  | ) |  |  |  |   | (34,036,346 | ) |
| Unrestrictedcash, at beginning ofperiod                                                           |  |  |                           |   | 53,538,554 |                         |  |  |      |   | 91,402,938  |      |  |  |  |   | 66,611,541  |   |  |  |  |   | 100,060,101 |   |
| Unrestrictedcash, at end ofperiod                                                                 |  |  |                           | $ | 57,549,532 |                         |  |  |      | $ | 66,023,755  |      |  |  |  | $ | 57,549,532  |   |  |  |  | $ | 66,023,755  |   |
|                                                                                                   |

Seeaccompanying Notes to FinancialStatements.

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Salomon Smith BarneyFairfield Futures Fund L.P. Notes to Financial StatementsJune 30, 2006 (Unaudited)

1.    General:

Salomon Smith Barney Fairfield Futures Fund L.P. (the‘‘Partnership’’) is a limited partnership whichwas organized on March 25, 2002 under the partnership laws of the Stateof New York to engage in the speculative trading of a diversifiedportfolio of commodity interests including futures contracts, optionsand forward contracts. The commodity interests that are traded by thePartnership are volatile and involve a high degree of market risk.During the initial offering period (April 15, 2002 through June 4,2002), the Partnership sold 12,423 redeemable units of LimitedPartnership Interest (‘‘Redeemable Units’’) and126 Units of General Partnership Interest. The Partnership commencedtrading on June 5, 2002.

Citigroup Managed Futures LLC, is thegeneral partner (the ‘‘General Partner’’) ofthe Partnership. The Partnership's commodity broker is CitigroupGlobal Markets Inc. (‘‘CGM’’). CGM is anaffiliate of the General Partner. The General Partner is wholly ownedby Citigroup Global Markets Holdings Inc.(‘‘CGMHI’’), which is the sole owner of CGM.CGMHI is a wholly owned subsidiary of Citigroup Inc. As of June 30,2006, all trading decisions for the Partnership are made by GrahamCapital Management, L.P. (the ‘‘Advisor’’).

The accompanying financial statements are unaudited but, in theopinion of management, include all adjustments, consisting only ofnormal recurring adjustments, necessary for a fair presentation of thePartnership's financial condition at June 30, 2006 and December31, 2005 and the results of its operations and cash flows for the threeand six months ended June 30, 2006 and 2005. These financial statementspresent the results of interim periods and do not include alldisclosures normally provided in annual financial statements. Youshould read these financial statements together with the financialstatements and notes included in the Partnership's Annual Reporton Form 10-K filed with the Securities and Exchange Commission for theyear ended December 31, 2005.

Due to the nature of commoditytrading, the results of operations for the interim periods presentedshould not be considered indicative of the results that may be expectedfor the entire year.

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Salomon Smith Barney Fairfield FuturesFund L.P. Notes to Financial Statements June 30, 2006(Unaudited)

2.    Financial Highlights:

Changes inNet Asset Value per Redeemable Unit of Limited Partnership Interest forthe three and six months ended June 30, 2006 and 2005 were asfollows:

|                                                        |  |  |                           |   |          |                         |  |  |      |   |          |      |  |  |  |   |          |   |  |  |  |   |          |   |
|--------------------------------------------------------|--|--|---------------------------|---|----------|-------------------------|--|--|------|---|----------|------|--|--|--|---|----------|---|--|--|--|---|----------|---|
|                                                   |  |  | ThreeMonths EndedJune 30, |   |          | Six Months EndedJune30, |
|                                                   |  |  | 2006                      |   |          | 2005                    |  |  | 2006 |   |          | 2005 |
| Netrealized and unrealized gains(losses)*              |  |  |                           | $ | 16.94    |                         |  |  |      | $ | (57.00   | )    |  |  |  | $ | 34.35    |   |  |  |  | $ | (354.59  | ) |
| Interestincome                                         |  |  |                           |   | 13.94    |                         |  |  |      |   | 7.67     |      |  |  |  |   | 26.07    |   |  |  |  |   | 15.26    |   |
| Expenses**                                             |  |  |                           |   | (9.79    | )                       |  |  |      |   | (8.85    | )    |  |  |  |   | (19.17   | ) |  |  |  |   | (18.66   | ) |
| Increase(decrease) for theperiod                       |  |  |                           |   | 21.09    |                         |  |  |      |   | (58.18   | )    |  |  |  |   | 41.25    |   |  |  |  |   | (357.99  | ) |
| NetAsset Value per Redeemable Unit, beginning ofperiod |  |  |                           |   | 1,411.52 |                         |  |  |      |   | 1,464.27 |      |  |  |  |   | 1,391.36 |   |  |  |  |   | 1,764.08 |   |
| NetAsset Value per Redeemable Unit, end ofperiod       |  |  |                           | $ | 1,432.61 |                         |  |  |      | $ | 1,406.09 |      |  |  |  | $ | 1,432.61 |   |  |  |  | $ | 1,406.09 |   |
|                                                        |

|   |                                |
|---|--------------------------------|
| * | Includesbrokerage commissions. |

|    |                                |
|----|--------------------------------|
| ** | Excludesbrokerage commissions. |

|                                              |  |  |                            |  |         |                         |  |  |      |  |         |      |  |  |  |  |         |    |  |  |  |  |         |    |
|----------------------------------------------|--|--|----------------------------|--|---------|-------------------------|--|--|------|--|---------|------|--|--|--|--|---------|----|--|--|--|--|---------|----|
|                                         |  |  | ThreeMonths Ended June 30, |  |         | Six Months EndedJune30, |
|                                         |  |  | 2006                       |  |         | 2005                    |  |  | 2006 |  |         | 2005 |
| Ratioto average net assets:***               |  |  |                            |  |    |                         |  |  |      |  |    |      |  |  |  |  |    |    |  |  |  |  |    |    |
| Netinvestment loss before incentive fees**** |  |  |                            |  | (3.8    | )%                      |  |  |      |  | (5.4    | )%   |  |  |  |  | (4.0    | )% |  |  |  |  | (5.5    | )% |
| Operatingexpenses                            |  |  |                            |  | 7.8     | %                       |  |  |      |  | 7.7     | %    |  |  |  |  | 7.8     | %  |  |  |  |  | 7.6     | %  |
| Incentivefees                                |  |  |                            |  | — | %                       |  |  |      |  | — | %    |  |  |  |  | — | %  |  |  |  |  | — | %  |
| Totalexpenses                                |  |  |                            |  | 7.8     | %                       |  |  |      |  | 7.7     | %    |  |  |  |  | 7.8     | %  |  |  |  |  | 7.6     | %  |
| Totalreturn:                                 |  |  |                            |  |    |                         |  |  |      |  |    |      |  |  |  |  |    |    |  |  |  |  |    |    |
| Total return beforeincentivefees             |  |  |                            |  | 1.5     | %                       |  |  |      |  | (4.0    | )%   |  |  |  |  | 3.0     | %  |  |  |  |  | (20.3   | )% |
| Incentivefees                                |  |  |                            |  | — | %                       |  |  |      |  | — | %    |  |  |  |  | — | %  |  |  |  |  | — | %  |
| Totalreturn after incentivefees              |  |  |                            |  | 1.5     | %                       |  |  |      |  | (4.0    | )%   |  |  |  |  | 3.0     | %  |  |  |  |  | (20.3   | )% |
|                                              |

|     |                                       |
|-----|---------------------------------------|
| *** | Annualized(other than incentive fees) |

|      |                                                                  |
|------|------------------------------------------------------------------|
| **** | Interest income less total expenses(exclusive of incentive fees) |

The aboveratios may vary for individual investors based on the timing of capitaltransactions during the period. Additionally, these ratios arecalculated for the Limited Partner class using the LimitedPartners' share of income, expenses and average netassets.

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Salomon Smith Barney Fairfield FuturesFund L.P. Notes to Financial Statements June 30, 2006(Unaudited)

3.    Trading Activities:

ThePartnership was formed for the purpose of trading contracts in avariety of commodity interests, including derivative financialinstruments and derivative commodity instruments. The results of thePartnership's trading activities are shown in the Statements ofIncome and Expenses and Partners' Capital and are discussed inItem 2, Management's Discussion and Analysis of FinancialCondition and Results of Operations.

The Customer Agreementbetween the Partnership and CGM gives the Partnership the legal rightto net unrealized gains and losses on open futures positions.

All of the commodity interests owned by the Partnership are held fortrading purposes. The average fair values of these interests during thesix and twelve months ended June 30, 2006 and December 31, 2005, basedon a monthly calculation, were $1,143,993 and $(10,724), respectively.The fair values of these commodity interests, including optionsthereon, if applicable, at June 30, 2006 and December 31, 2005, were$505,912 and $553,884, respectively. Fair values for exchange tradedcommodity futures and options are based on quoted market prices forthose futures and options. Fair values for all other financialinstruments for which market quotations are not readily available arebased on calculations approved by the General Partner.

4.    Financial Instrument Risks:

In the normal course ofits business, the Partnership is party to financial instruments withoff-balance sheet risk, including derivative financial instruments andderivative commodity instruments. These financial instruments mayinclude forwards, futures and options, whose values are based upon anunderlying asset, index, or reference rate, and generally representfuture commitments to exchange currencies or cash flows, to purchase orsell other financial instruments at specific terms at specified futuredates, or, in the case of derivative commodity instruments, to have areasonable possibility to be settled in cash, through physical deliveryor with another financial instrument. These instruments may be tradedon an exchange or over-the-counter (‘‘OTC’’).Exchange traded instruments are standardized and include futures andcertain option contracts. OTC contracts are negotiated betweencontracting parties and include forwards and certain options.

Each of these instruments is subject to various risks similar tothose related to the underlying financial instruments including marketand credit risk. In general, the risks associated with OTC contractsare greater than those associated with exchange traded instrumentsbecause of the greater risk of default by the counterparty to an OTCcontract.

Market risk is the potential for changes in the valueof the financial instruments traded by the Partnership due to marketchanges, including interest and foreign exchange rate movements andfluctuations in commodity or security prices. Market risk is directlyimpacted by the volatility and liquidity in the markets in which therelated underlying assets are traded.

Credit risk is thepossibility that a loss may occur due to the failure of a counterpartyto perform according to the terms of a contract. Credit risk withrespect to exchange traded instruments is reduced to the extent that anexchange or clearing organization acts as a counterparty to thetransactions. The Partnership's risk of loss in the event ofcounterparty default is typically limited to the amounts recognized asunrealized appreciation in the statements of financial condition andnot represented by the contract or notional amounts of the instruments.The Partnership has credit risk and concentration risk because the solecounterparty or broker with respect to the Partnership's assetsis CGM.

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Salomon Smith Barney Fairfield FuturesFund L.P. Notes to Financial Statements June 30, 2006(Unaudited)

The General Partner monitors and controls thePartnership's risk exposure on a daily basis through financial,credit and risk management monitoring systems, and accordingly believesthat it has effective procedures for evaluating and limiting the creditand market risks to which the Partnership is subject. These monitoringsystems allow the General Partner to statistically analyze actualtrading results with risk-adjusted performance indicators andcorrelation statistics. In addition, on-line monitoring systems provideaccount analysis of futures, forward and option positions by sector,margin requirements, gain and loss transactions and collateralpositions.

The majority of these instruments mature within oneyear of June 30, 2006. However, due to the nature of thePartnership's business, these instruments may not be held tomaturity.

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Item2.    Management's Discussion and Analysis of FinancialCondition and Results of Operations.

Liquidity andCapital Resources

The Partnership does not engage in thesale of goods or services. Its only assets are its equity in itscommodity futures trading account, consisting of cash, net unrealizedappreciation (depreciation) on open futures and forward contracts andinterest receivable. Because of the low margin deposits normallyrequired in commodity futures trading, relatively small price movementsmay result in substantial losses to the Partnership. While substantiallosses could lead to a substantial decrease in liquidity, no suchlosses occurred in the second quarter of 2006.

ThePartnership's capital consists of capital contributions, asincreased or decreased by realized and/or unrealized gains or losses oncommodity futures trading and expenses, interest income, redemptions ofRedeemable Units and distributions of profits, if any.

For thesix months ended June 30, 2006, Partnership capital decreased15.4% from $69,726,554 to $58,989,116. This decrease wasattributable to a redemption of 8,938.1214 Redeemable Units of LimitedPartnership Interest totaling $12,783,814, which was partially offsetby net income from operations of $2,046,376. Future redemptions canimpact the amount of funds available for investment in commoditycontract positions in subsequent periods.

CriticalAccounting Policies

The preparation of financial statementsin conformity with accounting principles generally accepted in theUnited States of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities,disclosures of contingent assets and liabilities at the date of thefinancial statements and reported amounts of revenues and expensesduring the reporting period. Actual results could differ from theseestimates.

All commodity interests (including derivativefinancial instruments and derivative commodity instruments) are usedfor trading purposes. The commodity interests are recorded on tradedate and open contracts are recorded in the statements of financialcondition at fair value on the last business day of the period, whichrepresents market value for those commodity interests for which marketquotations are readily available or other measures of fair value deemedappropriate by management of the General Partner for those commodityinterests and foreign currencies for which market quotations are notreadily available. Investments in commodity interests denominated inforeign currencies are translated into U.S. dollars at the exchangerates prevailing on the last business day of the period. Realized gains(losses) and changes in unrealized values on open positions arerecognized in the period in which the contract is closed or the changesoccur and are included in net gains (losses) on trading of commodityinterests.

Foreign currency contracts are those contracts wherethe Partnership agrees to receive or deliver a fixed quantity offoreign currency for an agreed-upon price on an agreed future date.Foreign currency contracts are valued daily, and thePartnership's net equity therein, representing unrealized gain orloss on the contracts as measured by the difference between the forwardforeign exchange rates at the dates of entry into the contracts and theforward rates at the reporting date, is included in the statements offinancial condition. Realized gains (losses) and changes in unrealizedvalues on foreign currency contracts are recognized in the period inwhich the contract is closed or the changes occur and are included inthe statements of income and expenses and partners' capital.

Results of Operations

During thePartnership's second quarter of 2006, the Net Asset Value perRedeemable Unit increased 1.5% from $1,411.52 to $1,432.61 ascompared to a decrease of 4.0% in the second quarter of 2005.The Partnership experienced a net trading gain before brokeragecommissions and related fees in the second quarter of 2006 of$1,674,453. Gains were primarily attributable to the trading ofcommodity futures in energy, metals, softs, and U.S. and non-U.S.interest rates and were partially offset by losses in currencies,grains and indices. The Partnership experienced a net trading lossbefore brokerage commissions and related fees in the second quarter of2005 of $3,281,175. Losses were primarily attributable to the tradingof commodity futures in metals, softs, U.S. interest rates, energy,grains and indices and were partially offset by gains in currencies andnon-U.S. interest rates.

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The second quarter of 2006 was challengingfor the Partnership's Advisor as both financial and commoditymarkets entered a highly volatile period. Gains earned in interestrate, energy and metals trading offset losses in currency and stockindex trading.

Energy trading was slightly profitable as longpositions were helped by rising petroleum prices supported bycontinuing geopolitical disturbance and short positions benefited fromdeteriorating fundamentals in natural gas. Trends in the metal sectorextended from the first quarter and remained strong for the first halfof the second quarter. The substantial gains accumulated from recordgold, silver and base metal price trends were more than enough to coverlosses during the metals correction in May. 

Trading in U.S. andglobal fixed income markets was profitable as central bank continued toraise global rates to combat inflation pressure and Advisor'spositions were able to take advantage of these trends.

The lackof direction in the currency sector was a result of speculationrelating to U.S. interest rate policy coupled global inflationconcerns. Losses in the equity sector were attributable to globaleconomic slowdown as most of the major equity indices experienced amaterial correction in May after reaching multi-year highs. Trading inagricultural products was mixed as sharp price reversals in grainstranslated into losses while gains were made in softs trading.

During the Partnership's six months ended June 30, 2006, theNet Asset Value per Redeemable Unit increased 3.0% from$1,391.36 to $1,432.61 as compared to a decrease of 20.3% duringthe six months ended June 30, 2005. The Partnership experienced a nettrading gain before brokerage commissions and related fees during thesix months ended June 30, 2006 of $3,351,234. Gains were primarilyattributable to the trading of commodity futures in metals, indices,and U.S. and non-U.S. interest rates and were partially offset bylosses in currencies, energy, grains, and softs. The Partnershipexperienced a net trading loss before brokerage commissions and relatedfees during the six months ended June 30, 2005 of $22,976,544. Losseswere primarily attributable to the trading of commodity futures incurrencies, metals, grains, energy, softs, U.S. interest rates andindices and were partially offset by gains in non-U.S. interestrates.

Commodity futures markets are highly volatile. Thepotential for broad and rapid price fluctuations increases the risksinvolved in commodity trading, but also increases the possibility ofprofit. The profitability of the Partnership depends on the existenceof major price trends and the ability of the Advisor to correctlyidentify those price trends. Price trends are influenced by, amongother things, changing supply and demand relationships, weather,governmental, agricultural, commercial and trade programs and policies,national and international political and economic events and changes ininterest rates. To the extent that market trends exist and the Advisoris able to identify them, the Partnership expects to increase capitalthrough operations.

Interest income on 80% of thePartnership's daily average equity maintained in cash was earnedat a 30-day U.S. Treasury bill rate determined weekly by CGM based onthe average non-competitive yield on 3-month U.S. Treasury billsmaturing in 30 days. CGM may continue to maintain thePartnership's assets in cash and/or place all of thePartnership's assets in 90-day Treasury bills and pay thePartnership 80% of the interest earned on the Treasury billspurchased. CGM will retain 20% of any interest earned onTreasury bills. Interest income for the three and six months ended June30, 2006 increased by $103,333 and $162,292, respectively, as comparedto the corresponding period in 2005. The increase in interest income isprimarily due to higher interest rates during the three and six monthsended June 30, 2006 as compared to the corresponding periods in2005.

Brokerage commissions are calculated as a percentage ofthe Partnership's adjusted net asset value on the last day ofeach month and are affected by trading performance, additions andredemptions. Accordingly, they must be analyzed in relation to thefluctuations in the monthly net asset values. Commissions and fees forthe three and six months ended June 30, 2006 decreased by $337,265 and$843,408, respectively, as compared to the corresponding period in2005. The decrease in commissions was primarily due to lower averagenet assets during the three and six months ended June 30, 2006 ascompared to the corresponding period in 2005.

Management feesare calculated as a percentage of the Partnership's net assetvalue as of the end of each month and are affected by tradingperformance, additions and redemptions. Management fees for

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the three and six months ended June 30, 2006decreased by $122,190 and $307,096, respectively, as compared to thecorresponding period in 2005. The decrease in management fees wasprimarily due to lower average net assets during the three and sixmonths ended June 30, 2006 as compared to the corresponding period in2005.

Administrative fees are paid to the General Partner foradministering the business and affairs of the Partnership. These feesare calculated as a percentage of the Partnership's net assetvalue as of the end of each month and are affected by tradingperformance and redemptions. Administrative fees for the three and sixmonths ended June 30, 2006 decreased by $30,547 and $76,774 as comparedto the corresponding period in 2005. Administrative fees decreased dueto lower average net assets during the three and six months ended June30, 2006 as compared to the corresponding period in 2005.

Incentive fees are based on the new trading profits generated by theAdvisor at the end of the quarter as defined in the advisory agreementsbetween the Partnership, the General Partner and the Advisor. Therewere no incentive fees earned for the three and six months ended June30, 2006 and 2005.

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Item3.    Quantitative and Qualitative Disclosures about Market Risk

The Partnership is a speculative commodity pool. The marketsensitive instruments held by it are acquired for speculative tradingpurposes, and all or substantially all of the Partnership'sassets are subject to the risk of trading loss. Unlike an operatingcompany, the risk of market sensitive instruments is integral, notincidental, to the Partnership's main line of business.

Market movements result in frequent changes in the fair market valueof the Partnership's open positions and, consequently, in itsearnings and cash flow. The Partnership's market risk isinfluenced by a wide variety of factors, including the level andvolatility of interest rates, exchange rates, equity price levels, themarket value of financial instruments and contracts, thediversification effects among the Partnership's open positionsand the liquidity of the markets in which it trades.

ThePartnership rapidly acquires and liquidates both long and shortpositions in a wide range of different markets. Consequently, it is notpossible to predict how a particular future market scenario will affectperformance, and the Partnership's past performance is notnecessarily indicative of its future results.

Value at Risk is ameasure of the maximum amount which the Partnership could reasonably beexpected to lose in a given market sector. However, the inherentuncertainty of the Partnership's speculative trading and therecurrence in the markets traded by the Partnership of market movementsfar exceeding expectations could result in actual trading ornon-trading losses far beyond the indicated Value at Risk or thePartnership's experience to date (i.e., ‘‘risk ofruin’’). In light of the foregoing, as well as the risksand uncertainties intrinsic to all future projections, the inclusion ofthe quantification in this section should not be considered toconstitute any assurance or representation that the Partnership'slosses in any market sector will be limited to Value at Risk or by thePartnership's attempts to manage its market risk.

Exchangemaintenance margin requirements have been used by the Partnership asthe measure of its Value at Risk. Maintenance margin requirements areset by exchanges to equal or exceed the maximum losses reasonablyexpected to be incurred in the fair value of any given contract in95%-99% of any one-day interval. Maintenance margin hasbeen used rather than the more generally available initial margin,because initial margin includes a credit risk component, which is notrelevant to Value at Risk.

The following table indicates thetrading Value at Risk associated with the Partnership's openpositions by market category as of June 30, 2006, and the highest,lowest and average values during the three months ended June 30, 2006.All open position trading risk exposures of the Partnership have beenincluded in calculating the figures set forth below. As of June 30,2006, the Partnership's total capitalization was $58,989,116.There has been no material changes in the trading Value at Riskinformation previously disclosed in the Partnership's AnnualReport on Form 10-K for the year ended December 31, 2005.

June 30, 2006(Unaudited)

|                        |  |  |              |   |           |                         |  |  |                                |  |        |                  |  |  |                     |   |           |  |  |  |  |   |         |  |  |  |  |   |           |  |
|------------------------|--|--|--------------|---|-----------|-------------------------|--|--|--------------------------------|--|--------|------------------|--|--|---------------------|---|-----------|--|--|--|--|---|---------|--|--|--|--|---|-----------|--|
|                   |  |  |         |   |           |                    |  |  | Threemonths ended June 30,2006 |
| Market Sector          |  |  | Valueat Risk |   |           | % ofTotalCapitalization |  |  | HighValue atRisk               |  |        | LowValue at Risk |  |  | AverageValueatRisk* |
| Currencies:            |  |  |              |   |      |                         |  |  |                                |  |   |                  |  |  |                     |   |      |  |  |  |  |   |    |  |  |  |  |   |      |  |
| –ExchangeTraded  |  |  |              | $ | 146,300   |                         |  |  |                                |  | 0.25   | %                |  |  |                     | $ | 314,545   |  |  |  |  | $ | 17,556  |  |  |  |  | $ | 118,503   |  |
| –OTC             |  |  |              |   | 913,156   |                         |  |  |                                |  | 1.55   | %                |  |  |                     |   | 1,369,480 |  |  |  |  |   | 262,247 |  |  |  |  |   | 696,660   |  |
| Energy                 |  |  |              |   | 149,575   |                         |  |  |                                |  | 0.25   | %                |  |  |                     |   | 330,675   |  |  |  |  |   | 105,795 |  |  |  |  |   | 180,808   |  |
| Grains                 |  |  |              |   | 53,963    |                         |  |  |                                |  | 0.09   | %                |  |  |                     |   | 304,715   |  |  |  |  |   | 25,400  |  |  |  |  |   | 188,350   |  |
| InterestRatesU.S.      |  |  |              |   | 307,193   |                         |  |  |                                |  | 0.52   | %                |  |  |                     |   | 3,036,960 |  |  |  |  |   | 644,491 |  |  |  |  |   | 1,359,428 |  |
| InterestRates Non-U.S. |  |  |              |   | 661,493   |                         |  |  |                                |  | 1.12   | %                |  |  |                     |   | 3,856,632 |  |  |  |  |   | 307,193 |  |  |  |  |   | 1,905,345 |  |
| Softs                  |  |  |              |   | 305,620   |                         |  |  |                                |  | 0.52   | %                |  |  |                     |   | 388,678   |  |  |  |  |   | 111,440 |  |  |  |  |   | 293,779   |  |
| Indices                |  |  |              |   | 194,450   |                         |  |  |                                |  | 0.33   | %                |  |  |                     |   | 4,804,160 |  |  |  |  |   | 170,116 |  |  |  |  |   | 1,759,133 |  |
| Total                  |  |  |              | $ | 2,731,750 |                         |  |  |                                |  | 4.63   | %                |  |  |                     |   |      |  |  |  |  |   |    |  |  |  |  |   |      |  |
|                        |

|   |                                    |
|---|------------------------------------|
| * | Averageof month-end Values at Risk |

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Item 4.    Controls and Procedures

The General Partner of the Partnership, with the participation ofthe General Partner's Chief Executive Officer and Chief FinancialOfficer, has evaluated the effectiveness of the design and operation ofits disclosure controls and procedures (as defined in Rules 13a-15(e)and 15d-15(e) of the Exchange Act) with respect to the Partnership asof the end of the period covered by the report, and, based on thisevaluation, has concluded that these disclosure controls and proceduresare effective. There was no change in the Partnership's internalcontrol over financial reporting during the period covered by thisreport that has materially affected, or is reasonably likely tomaterially affect, the Partnership's internal control overfinancial reporting.

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PART II. OTHERINFORMATION

Item 1.    Legal Proceedings

 Thefollowing information supplements and amends our discussion set forthunder Part  I, Item 3 ‘‘LegalProceedings’’ in our Annual Report on Form  10-K forthe fiscal year ended December  31, 2005, as updated by ourQuarterly Report on Form  10-Q for the quarter ended March31, 2006.

Enron Corp.

 On May  24, 2006,the District Court gave final approval to Citigroup's settlementof the securities class action (NEWBY, ET AL. V. ENRON CORP., ETAL.).

Research

 On May  12, 2006, theDistrict Court preliminarily approved the class action settlements inIN RE SALOMON ANALYST LEVEL 3 LITIGATION, IN RE SALOMON ANALYST XOLITIGATION, and IN RE SALOMON ANALYST WILLIAMS LITIGATION.

 On May  18, 2006, the District Court gave finalapproval to the settlement in NORMAN v. SALOMON SMITH BARNEY.

 On June  20, 2006, the District Court certified theplaintiff class in IN RE SALOMON ANALYST METROMEDIA LITIGATION.

 On June  26, 2006, the United States Supreme Courtgranted plaintiffs' petition for a writ of certiorari, vacatedthe opinion of the United States Court of Appeals for the SeventhCircuit in DISHER v. CITIGROUP GLOBAL MARKETS  INC., and thenremanded the case to the Seventh Circuit for further proceedings inlight of the Supreme Court's decision in Kircher v.Putnam Funds Trust.

Adelphia CommunicationsCorporation

 Without admitting any liability, CGMI andnumerous other financial institution defendants have agreed to settleIN RE ADELPHIA COMMUNICATIONS CORPORATION SECURITIES AND DERIVATIVELITIGATION for a total of $250  million, subject to final courtapproval. On June  15, 2006, the court granted its preliminaryapproval of the settlement and set November  10, 2006 for a finalhearing. CGMI's share of the settlement is covered by existingreserves.

Item 1A.    Risk Factors

There are nomaterial changes from the risk factors set forth under Part I, Item 1A.‘‘Risk Factors’’ in our Annual Report on Form10-K for the fiscal year ended December 31, 2005.

Item2.    Unregistered Sales of Equity Securities and Use ofProceeds

The following chart sets forth the purchasesof Redeemable Units by thePartnership.

|                                    |  |  |                                     |  |  |                                  |  |  |                                                                                   |  |  |                                                                                                               |
|------------------------------------|--|--|-------------------------------------|--|--|----------------------------------|--|--|-----------------------------------------------------------------------------------|--|--|---------------------------------------------------------------------------------------------------------------|
| Period                             |  |  | (a)Total Number of Units Purchased* |  |  | (b) AveragePrice Paid per Unit** |  |  | (c) Total Number of UnitsPurchased as Part of Publicly Announced Plans orPrograms |  |  | (d) Maximum Number (or Approximate DollarValue) of Units that May Yet Be Purchased Under thePlans or Programs |
| April 1, 2006– April 30,2006 |  |  |   1,487.9212              |  |  | $1,498.65                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
| May1, 2006 – May 31,2006     |  |  | 1,367.5700                          |  |  | $1,450.51                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
| June1, 2006 – June 30,2006   |  |  | 1,000.6058                          |  |  | $1,432.61                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
|                               |  |  | 3,856.0970                          |  |  | $1,460.59                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
|                                    |

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|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | * Generally, Limited Partnersare permitted to redeem their Redeemable Units as of the end of eachmonth on 10 days' notice to the General Partner. Under certaincircumstances, the General Partner can compel redemption but to datethe General Partner has not exercised this right. Purchases ofRedeemable Units by the Partnership reflected in the chart above weremade in the ordinary course of the Partnership's business inconnection with effecting redemptions for Limited Partners. |

|  |                                                                                                                                           |
|--|-------------------------------------------------------------------------------------------------------------------------------------------|
|  | ** Redemptions of Redeemable Units are effected as of the lastday of each month at the Net Asset Value per Redeemable Unit as of thatday. |

Item 3.    Defaults Upon Senior Securities– None

Item 4.    Submission of Matters to aVote of Security Holders – None

Item5.    Other Information – None

Item6.    Exhibits

|        |                                                                                                                                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The exhibits required tobe filed by Item 601 of Regulation S-K are incorporated herein byreference to the exhibit index of the Partnership's Annual Reporton Form 10-K for the period ended December 31, 2005. |

|        |                                                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------|
|   | Exhibit – 31.1 – Rule13a-14(a)/15d-14(a) Certification (Certification of President andDirector) |

|        |                                                                                                                           |
|--------|---------------------------------------------------------------------------------------------------------------------------|
|   | Exhibit – 31.2– Rule 13a-14(a)/15d-14(a) Certification (Certification of ChiefFinancial Officer and Director) |

|        |                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------|
|   | Exhibit – 32.1 – Section1350 Certification (Certification of President and Director). |

|        |                                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------|
|   | Exhibit – 32.2 – Section1350 Certification (Certification of Chief Financial Officer andDirector). |

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,the registrant has duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized.

SALOMONSMITH BARNEY FAIRFIELD FUTURES FUND L.P.

|        |  |  |                                                            |
|--------|--|--|------------------------------------------------------------|
| By:    |  |  | CitigroupManaged Futures LLC                               |
|   |  |  | (General Partner)                                          |
| By:    |  |  | /s/David J. Vogel                                          |
|   |  |  | David J. Vogel,Presidentand Director                       |
| Date:  |  |  | August14,2006                                              |
| By:    |  |  | /s/Daniel R. McAuliffe,Jr.                                 |
|   |  |  | Daniel R.McAuliffe, Jr.Chief Financial Officer andDirector |
| Date:  |  |  | August14, 2006                                             |
|        |

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