UNITEDSTATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,D.C. 20549

FORM 10-Q

(X) QUARTERLY REPORT UNDERSECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF1934

OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF1934

For the Quarter endedSeptember 30, 2006

Commission File Number000-50736

SALOMON SMITH BARNEY FAIRFIELDFUTURES FUND L.P.

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|--|
|  |  |
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(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

SALOMONSMITH BARNEY FAIRFIELD FUTURES FUND L.P.

FORM 10-Q

INDEX

|                                                        |  |  |                                                                                                                                |  |  |              |
|--------------------------------------------------------|--|--|--------------------------------------------------------------------------------------------------------------------------------|--|--|--------------|
|                                                   |  |  |                                                                                                                           |  |  | PageNumber   |
| PARTI - Financial Information:                         |  |  |                                                                                                                           |
|         Item1. |  |  | FinancialStatements:                                                                                                           |  |  |         |
|                                                   |  |  | Statements of FinancialConditionat September 30, 2006 and December 31,2005(unaudited).                                         |  |  | 3            |
|                                                   |  |  | CondensedSchedules of Investmentsat September 30, 2006 and December 31,2005(unaudited).                                        |  |  | 4 –5   |
|                                                   |  |  | Statements of Income and ExpensesandPartners' Capital for the three and ninemonths endedSeptember 30, 2006 and2005(unaudited). |  |  | 6            |
|                                                   |  |  | Statementsof Cash Flows for the three and nine months ended September 30,2006 and 2005(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

----

PART I

Item1.    Financial Statements

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

|                                                                                                                                         |  |  |                  |   |            |                 |  |  |  |   |            |  |
|-----------------------------------------------------------------------------------------------------------------------------------------|--|--|------------------|---|------------|-----------------|--|--|--|---|------------|--|
|                                                                                                                                    |  |  | September30,2006 |   |            | December31,2005 |
| Assets:                                                                                                                                 |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Equityin commodity futures tradingaccount:                                                                                              |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Cash (restricted$6,303,417 and $6,668,033 in 2006 and 2005,respectively)                                                                |  |  |                  | $ | 54,275,951 |                 |  |  |  | $ | 73,279,574 |  |
| Net unrealized appreciation on open futurespositions                                                                                    |  |  |                  |   | 725,624    |                 |  |  |  |   | —    |  |
| Unrealized appreciation on open forwardcontracts                                                                                        |  |  |                  |   | 851,649    |                 |  |  |  |   | 2,834,674  |  |
|                                                                                                                                    |  |  |                  |   | 55,853,224 |                 |  |  |  |   | 76,114,248 |  |
| Interestreceivable                                                                                                                      |  |  |                  |   | 57,175     |                 |  |  |  |   | 28,843     |  |
|                                                                                                                                    |  |  |                  | $ | 55,910,399 |                 |  |  |  | $ | 76,143,091 |  |
| Liabilities andPartners'Capital:                                                                                                        |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Liabilities:                                                                                                                            |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Netunrealized depreciation on open futures contracts                                                                                    |  |  |                  | $ | —    |                 |  |  |  | $ | 142,543    |  |
| Unrealized depreciation on openforwards contracts                                                                                       |  |  |                  |   | 871,306    |                 |  |  |  |   | 2,138,247  |  |
| Accruedexpenses:                                                                                                                        |  |  |                  |   |       |                 |  |  |  |   |       |  |
| Brokeragecommissions                                                                                                                    |  |  |                  |   | 206,397    |                 |  |  |  |   | 282,296    |  |
| Management fees                                                                                                                         |  |  |                  |   | 91,265     |                 |  |  |  |   | 124,908    |  |
| Administrativefees                                                                                                                      |  |  |                  |   | 22,816     |                 |  |  |  |   | 31,227     |  |
| Other                                                                                                                                   |  |  |                  |   | 73,593     |                 |  |  |  |   | 45,246     |  |
| Redemptionspayable                                                                                                                      |  |  |                  |   | 679,387    |                 |  |  |  |   | 3,652,070  |  |
|                                                                                                                                    |  |  |                  |   | 1,944,764  |                 |  |  |  |   | 6,416,537  |  |
| Partners'Capital:                                                                                                                       |  |  |                  |   |       |                 |  |  |  |   |       |  |
| General Partner,864.9335 Unit equivalents outstanding in 2006 and2005                                                                   |  |  |                  |   | 1,168,421  |                 |  |  |  |   | 1,203,434  |  |
| Limited Partners, 39,083.4633 and 49,249.2016 RedeemableUnits of Limited Partnership Interest outstanding in 2006 and 2005,respectively |  |  |                  |   | 52,797,214 |                 |  |  |  |   | 68,523,120 |  |
|                                                                                                                                    |  |  |                  |   | 53,965,635 |                 |  |  |  |   | 69,726,554 |  |
|                                                                                                                                    |  |  |                  | $ | 55,910,399 |                 |  |  |  | $ | 76,143,091 |  |
|                                                                                                                                         |

See accompanying Notes toFinancial Statements.

3

----

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

|                                                   |  |  |           |   |          |                      |  |  |  |  |        |     |
|---------------------------------------------------|--|--|-----------|---|----------|----------------------|--|--|--|--|--------|-----|
|                                              |  |  | FairValue |   |          | % ofPartners'Capital |
| FuturesContractsPurchased                         |  |  |           |   |     |                      |  |  |  |  |   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Grains                                            |  |  |           | $ | (2,100   | )                    |  |  |  |  | (0.00  | )*% |
| Indices                                           |  |  |           |   | 780,072  |                      |  |  |  |  | 1.45   |     |
| Interest RatesU.S.                                |  |  |           |   | (64,473  | )                    |  |  |  |  | (0.12  | )   |
| Interest RatesNon-U.S.                            |  |  |           |   | (7,974   | )                    |  |  |  |  | (0.01  | )   |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Totalfutures contracts purchased                  |  |  |           |   | 705,525  |                      |  |  |  |  | 1.32   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| FuturesContractsSold                              |  |  |           |   |     |                      |  |  |  |  |   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Energy                                            |  |  |           |   | 56,198   |                      |  |  |  |  | 0.10   |     |
| Grains                                            |  |  |           |   | (26,718  | )                    |  |  |  |  | (0.05  | )   |
| Indices                                           |  |  |           |   | (8,440   | )                    |  |  |  |  | (0.02  | )   |
| InterestRates U.S.                                |  |  |           |   | (17,213  | )                    |  |  |  |  | (0.03  | )   |
| InterestRatesNon-U.S.                             |  |  |           |   | (146,432 | )                    |  |  |  |  | (0.27  | )   |
| Softs                                             |  |  |           |   | 162,704  |                      |  |  |  |  | 0.30   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Total futures contractssold                       |  |  |           |   | 20,099   |                      |  |  |  |  | 0.03   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| UnrealizedAppreciation on ForwardContracts        |  |  |           |   |     |                      |  |  |  |  |   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Currencies                                        |  |  |           |   | 648,378  |                      |  |  |  |  | 1.20   |     |
| Metals                                            |  |  |           |   | 203,271  |                      |  |  |  |  | 0.38   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Total unrealizedappreciation on forward contracts |  |  |           |   | 851,649  |                      |  |  |  |  | 1.58   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| UnrealizedDepreciation on ForwardContracts        |  |  |           |   |     |                      |  |  |  |  |   |     |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Currencies                                        |  |  |           |   | (581,002 | )                    |  |  |  |  | (1.08  | )   |
| Metals                                            |  |  |           |   | (290,304 | )                    |  |  |  |  | (0.54  | )   |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Totalunrealized depreciation on forwardcontracts  |  |  |           |   | (871,306 | )                    |  |  |  |  | (1.62  | )   |
|                                              |  |  |           |   |     |                      |  |  |  |  |   |     |
| Totalfair value                                   |  |  |           | $ | 705,967  |                      |  |  |  |  | 1.31   | %   |
|                                                   |

|  |                                                                      |
|--|----------------------------------------------------------------------|
|  | Percentages are based onPartners' Capital unless otherwiseindicated. |

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

See accompanying Notes to FinancialStatements.

4

----

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.

5

----

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

|                                                                                                                                           |  |  |                                |   |            |                              |  |  |      |   |            |      |  |  |  |   |             |   |  |  |  |   |             |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--|--|--------------------------------|---|------------|------------------------------|--|--|------|---|------------|------|--|--|--|---|-------------|---|--|--|--|---|-------------|---|
|                                                                                                                                      |  |  | ThreeMonths EndedSeptember 30, |   |            | Nine MonthsEndedSeptember30, |
|                                                                                                                                      |  |  | 2006                           |   |            | 2005                         |  |  | 2006 |   |            | 2005 |
| Income:                                                                                                                                   |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Netgains (losses) on trading of commodityinterests:                                                                                       |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Realized gains(losses) on closed positions                                                                                                |  |  |                                | $ | (3,084,721 | )                            |  |  |      | $ | 3,956,892  |      |  |  |  | $ | 314,486     |   |  |  |  | $ | (23,416,415 | ) |
| Change in unrealized gains (losses) on openpositions                                                                                      |  |  |                                |   | 200,056    |                              |  |  |      |   | (2,558,721 | )    |  |  |  |   | 152,083     |   |  |  |  |   | 1,838,042   |   |
|                                                                                                                                      |  |  |                                |   | (2,884,665 | )                            |  |  |      |   | 1,398,171  |      |  |  |  |   | 466,569     |   |  |  |  |   | (21,578,373 | ) |
| Interestincome                                                                                                                            |  |  |                                |   | 570,893    |                              |  |  |      |   | 569,709    |      |  |  |  |   | 1,772,060   |   |  |  |  |   | 1,608,584   |   |
|                                                                                                                                      |  |  |                                |   | (2,313,772 | )                            |  |  |      |   | 1,967,880  |      |  |  |  |   | 2,238,629   |   |  |  |  |   | (19,969,789 | ) |
|                                                                                                                                      |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Expenses:                                                                                                                                 |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Brokeragecommissions including clearing fees of $18,708, $34,183, $95,875, and$91,812, respectively                                  |  |  |                                |   | 663,465    |                              |  |  |      |   | 1,046,616  |      |  |  |  |   | 2,283,323   |   |  |  |  |   | 3,509,882   |   |
| Managementfees                                                                                                                            |  |  |                                |   | 278,634    |                              |  |  |      |   | 424,122    |      |  |  |  |   | 941,419     |   |  |  |  |   | 1,394,003   |   |
| Administrativefees                                                                                                                        |  |  |                                |   | 69,658     |                              |  |  |      |   | 106,031    |      |  |  |  |   | 235,355     |   |  |  |  |   | 348,502     |   |
| Other                                                                                                                                     |  |  |                                |   | 28,310     |                              |  |  |      |   | 81,590     |      |  |  |  |   | 85,995      |   |  |  |  |   | 143,256     |   |
|                                                                                                                                      |  |  |                                |   | 1,040,067  |                              |  |  |      |   | 1,658,359  |      |  |  |  |   | 3,546,092   |   |  |  |  |   | 5,395,643   |   |
| Netincome(loss)                                                                                                                           |  |  |                                |   | (3,353,839 | )                            |  |  |      |   | 309,521    |      |  |  |  |   | (1,307,463  | ) |  |  |  |   | (25,365,432 | ) |
| Redemptions—LimitedPartners                                                                                                         |  |  |                                |   | (1,669,642 | )                            |  |  |      |   | (7,362,140 | )    |  |  |  |   | (14,453,456 | ) |  |  |  |   | (19,513,950 | ) |
| Netdecrease in Partners'Capital                                                                                                           |  |  |                                |   | (5,023,481 | )                            |  |  |      |   | (7,052,619 | )    |  |  |  |   | (15,760,919 | ) |  |  |  |   | (44,879,382 | ) |
| Partners'Capital, beginning ofperiod                                                                                                      |  |  |                                |   | 58,989,116 |                              |  |  |      |   | 87,543,923 |      |  |  |  |   | 69,726,554  |   |  |  |  |   | 125,370,686 |   |
| Partners'Capital, end ofperiod                                                                                                            |  |  |                                | $ | 53,965,635 |                              |  |  |      | $ | 80,491,304 |      |  |  |  | $ | 53,965,635  |   |  |  |  | $ | 80,491,304  |   |
| NetAsset Value per Redeemable Unit (39,948.3968 and 56,901.3349 RedeemableUnits outstanding at September  30, 2006 and 2005,respectively) |  |  |                                | $ | 1,350.88   |                              |  |  |      | $ | 1,414.58   |      |  |  |  | $ | 1,350.88    |   |  |  |  | $ | 1,414.58    |   |
| Netgain (loss) per Redeemable Unit of Limited Partnership Interest andGeneral Partner Unitequivalent                                      |  |  |                                | $ | (81.73     | )                            |  |  |      | $ | 8.49       |      |  |  |  | $ | (40.48      | ) |  |  |  | $ | (349.50     | ) |
|                                                                                                                                           |

Seeaccompanying Notes to Financial Statements.

6

----

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

|                                                                                                   |  |  |                                |   |            |                              |  |  |      |   |            |      |  |  |  |   |             |   |  |  |  |   |             |   |
|---------------------------------------------------------------------------------------------------|--|--|--------------------------------|---|------------|------------------------------|--|--|------|---|------------|------|--|--|--|---|-------------|---|--|--|--|---|-------------|---|
|                                                                                              |  |  | ThreeMonths EndedSeptember 30, |   |            | Nine MonthsEndedSeptember30, |
|                                                                                              |  |  | 2006                           |   |            | 2005                         |  |  | 2006 |   |            | 2005 |
| Cashflows from operatingactivities:                                                               |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Net income(loss)                                                                                  |  |  |                                | $ | (3,353,839 | )                            |  |  |      | $ | 309,521    |      |  |  |  | $ | (1,307,463  | ) |  |  |  | $ | (25,365,432 | ) |
| Adjustmentsto reconcile net income (loss) to net cash provided by (used  in)operating activities: |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Changes inoperating assets and liabilities:                                                       |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| (Increase)decrease in restrictedcash                                                              |  |  |                                |   | (3,571,110 | )                            |  |  |      |   | 7,827,554  |      |  |  |  |   | 364,616     |   |  |  |  |   | 20,095,883  |   |
| (Increase)decrease in net unrealized appreciation on open futurespositions                        |  |  |                                |   | (257,064   | )                            |  |  |      |   | 2,379,909  |      |  |  |  |   | (725,624    | ) |  |  |  |   | 1,444,177   |   |
| (Increase)decrease in unrealized appreciation on open forwardcontracts                            |  |  |                                |   | 144,202    |                              |  |  |      |   | 1,753,725  |      |  |  |  |   | 1,983,025   |   |  |  |  |   | 2,868,024   |   |
| (Increase)decrease in interestreceivable                                                          |  |  |                                |   | 4,784      |                              |  |  |      |   | (4,762     | )    |  |  |  |   | (28,332     | ) |  |  |  |   | (34,714     | ) |
| Increase(decrease) in unrealized depreciation on open futurescontracts                            |  |  |                                |   | —    |                              |  |  |      |   | —    |      |  |  |  |   | (142,543    | ) |  |  |  |   | —     |   |
| Increase(decrease) in unrealized depreciation on open forwardcontracts                            |  |  |                                |   | (87,193    | )                            |  |  |      |   | (1,574,913 | )    |  |  |  |   | (1,266,941  | ) |  |  |  |   | (6,150,243  | ) |
| Accruedexpenses:                                                                                  |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Increase (decrease) in brokeragecommissions                                                       |  |  |                                |   | (21,789    | )                            |  |  |      |   | (19,861    | )    |  |  |  |   | (75,899     | ) |  |  |  |   | (189,524    | ) |
| Increase(decrease) in managementfees                                                              |  |  |                                |   | (9,650     | )                            |  |  |      |   | (8,855     | )    |  |  |  |   | (33,643     | ) |  |  |  |   | (83,985     | ) |
| Increase(decrease) in administrativefees                                                          |  |  |                                |   | (2,413     | )                            |  |  |      |   | (2,213     | )    |  |  |  |   | (8,411      | ) |  |  |  |   | (20,996     | ) |
| Increase(decrease) inother                                                                        |  |  |                                |   | 807        |                              |  |  |      |   | 36,751     |      |  |  |  |   | 28,347      |   |  |  |  |   | 55,200      |   |
| Netcash provided by (used in) operatingactivities                                                 |  |  |                                |   | (7,153,265 | )                            |  |  |      |   | 10,696,856 |      |  |  |  |   | (1,212,868  | ) |  |  |  |   | (7,381,610  | ) |
| Cashflows from financing activities:                                                              |  |  |                                |   |       |                              |  |  |      |   |       |      |  |  |  |   |        |   |  |  |  |   |        |   |
| Payments forredemptions—LimitedPartners                                                     |  |  |                                |   | (2,423,733 | )                            |  |  |      |   | (5,685,142 | )    |  |  |  |   | (17,426,139 | ) |  |  |  |   | (21,643,022 | ) |
| Netchange incash                                                                                  |  |  |                                |   | (9,576,998 | )                            |  |  |      |   | 5,011,714  |      |  |  |  |   | (18,639,007 | ) |  |  |  |   | (29,024,632 | ) |
| Unrestrictedcash, at beginning ofperiod                                                           |  |  |                                |   | 57,549,532 |                              |  |  |      |   | 66,023,755 |      |  |  |  |   | 66,611,541  |   |  |  |  |   | 100,060,101 |   |
| Unrestrictedcash, at end ofperiod                                                                 |  |  |                                | $ | 47,972,534 |                              |  |  |      | $ | 71,035,469 |      |  |  |  | $ | 47,972,534  |   |  |  |  | $ | 71,035,469  |   |
|                                                                                                   |

Seeaccompanying Notes to FinancialStatements.

7

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Salomon Smith BarneyFairfield Futures Fund L.P. Notes to Financial StatementsSeptember 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 September30, 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 September 30, 2006 andDecember 31, 2005 and the results of its operations and cash flows forthe three and nine months ended September 30, 2006 and 2005. Thesefinancial statements present the results of interim periods and do notinclude all disclosures normally provided in annual financialstatements. You should read these financial statements together withthe financial statements and notes included in the Partnership'sAnnual Report on Form 10-K filed with the Securities and ExchangeCommission for the year ended December 31, 2005.

Due to thenature of commodity trading, the results of operations for the interimperiods presented should not be considered indicative of the resultsthat may be expected for the entire year.

8

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

2.    Financial Highlights:

Changes in Net Asset Value per Redeemable Unit of LimitedPartnership Interest for the three and nine months ended September 30,2006 and 2005 were asfollows:

|                                                        |  |  |                                |   |          |                              |  |  |      |   |          |      |  |  |  |   |          |   |  |  |  |   |          |   |
|--------------------------------------------------------|--|--|--------------------------------|---|----------|------------------------------|--|--|------|---|----------|------|--|--|--|---|----------|---|--|--|--|---|----------|---|
|                                                   |  |  | ThreeMonths EndedSeptember 30, |   |          | Nine MonthsEndedSeptember30, |
|                                                   |  |  | 2006                           |   |          | 2005                         |  |  | 2006 |   |          | 2005 |
| Netrealized and unrealized gains(losses)*              |  |  |                                | $ | (86.49   | )                            |  |  |      | $ | 9.18     |      |  |  |  | $ | (52.14   | ) |  |  |  | $ | (345.41  | ) |
| Interestincome                                         |  |  |                                |   | 13.99    |                              |  |  |      |   | 9.34     |      |  |  |  |   | 40.06    |   |  |  |  |   | 24.60    |   |
| Expenses**                                             |  |  |                                |   | (9.23    | )                            |  |  |      |   | (10.03   | )    |  |  |  |   | (28.40   | ) |  |  |  |   | (28.69   | ) |
| Increase(decrease) for theperiod                       |  |  |                                |   | (81.73   | )                            |  |  |      |   | 8.49     |      |  |  |  |   | (40.48   | ) |  |  |  |   | (349.50  | ) |
| NetAsset Value per Redeemable Unit, beginning ofperiod |  |  |                                |   | 1,432.61 |                              |  |  |      |   | 1,406.09 |      |  |  |  |   | 1,391.36 |   |  |  |  |   | 1,764.08 |   |
| NetAsset Value per Redeemable Unit, end ofperiod       |  |  |                                | $ | 1,350.88 |                              |  |  |      | $ | 1,414.58 |      |  |  |  | $ | 1,350.88 |   |  |  |  | $ | 1,414.58 |   |
|                                                        |

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

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

|                                              |  |  |                                 |  |         |                              |  |  |      |  |         |      |  |  |  |  |         |    |  |  |  |  |         |    |
|----------------------------------------------|--|--|---------------------------------|--|---------|------------------------------|--|--|------|--|---------|------|--|--|--|--|---------|----|--|--|--|--|---------|----|
|                                         |  |  | ThreeMonths Ended September 30, |  |         | Nine MonthsEndedSeptember30, |
|                                         |  |  | 2006                            |  |         | 2005                         |  |  | 2006 |  |         | 2005 |
| Ratioto average net assets:***               |  |  |                                 |  |    |                              |  |  |      |  |    |      |  |  |  |  |    |    |  |  |  |  |    |    |
| Netinvestment loss before incentive fees**** |  |  |                                 |  | (3.2    | )%                           |  |  |      |  | (5.2    | )%   |  |  |  |  | (3.7    | )% |  |  |  |  | (5.4    | )% |
| Operatingexpenses                            |  |  |                                 |  | 7.4     | %                            |  |  |      |  | 7.9     | %    |  |  |  |  | 7.6     | %  |  |  |  |  | 7.6     | %  |
| Incentivefees                                |  |  |                                 |  | — | %                            |  |  |      |  | — | %    |  |  |  |  | — | %  |  |  |  |  | — | %  |
| Totalexpenses                                |  |  |                                 |  | 7.4     | %                            |  |  |      |  | 7.9     | %    |  |  |  |  | 7.6     | %  |  |  |  |  | 7.6     | %  |
| Totalreturn:                                 |  |  |                                 |  |    |                              |  |  |      |  |    |      |  |  |  |  |    |    |  |  |  |  |    |    |
| Total return beforeincentivefees             |  |  |                                 |  | (5.7    | )%                           |  |  |      |  | 0.6     | %    |  |  |  |  | (2.9    | )% |  |  |  |  | (19.8   | )% |
| Incentivefees                                |  |  |                                 |  | — | %                            |  |  |      |  | — | %    |  |  |  |  | — | %  |  |  |  |  | — | %  |
| Totalreturn after incentivefees              |  |  |                                 |  | (5.7    | )%                           |  |  |      |  | 0.6     | %    |  |  |  |  | (2.9    | )% |  |  |  |  | (19.8   | )% |
|                                              |

|     |                                       |
|-----|---------------------------------------|
| *** | 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.

9

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Salomon Smith Barney Fairfield FuturesFund L.P. Notes to Financial Statements September 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 thenine and twelve months ended September 30, 2006 and December 31, 2005,based on a monthly calculation, were $651,935 and $(10,724),respectively. The fair values of these commodity interests, includingoptions thereon, if applicable, at September 30, 2006 andDecember  31, 2005, were $705,967 and $553,884, respectively.Fair values for exchange traded commodity futures and options are basedon quoted market prices for those futures and options. Fair values forall other financial instruments for which market quotations are notreadily available are based on calculations approved by the GeneralPartner.

4.    Financial Instrument Risks:

In thenormal course of its business, the Partnership is party to financialinstruments with off-balance sheet risk, including derivative financialinstruments and derivative commodity instruments. These financialinstruments may include forwards, futures and options, whose values arebased upon an underlying asset, index, or reference rate, and generallyrepresent future commitments to exchange currencies or cash flows, topurchase or sell other financial instruments at specific terms atspecified future dates, or, in the case of derivative commodityinstruments, to have a reasonable possibility to be settled in cash,through physical delivery or with another financial instrument. Theseinstruments may be traded on an exchange or over-the-counter(‘‘OTC’’). Exchange traded instruments arestandardized and include futures and certain option contracts. OTCcontracts are negotiated between contracting parties and includeforwards and certain options.

Each of these instruments issubject to various risks similar to those related to the underlyingfinancial instruments including market and credit risk. In general, therisks associated with OTC contracts are greater than those associatedwith exchange traded instruments because of the greater risk of defaultby the counterparty to an OTC contract.

Market risk is thepotential for changes in the value of the financial instruments tradedby the Partnership due to market changes, including interest andforeign exchange rate movements and fluctuations in commodity orsecurity prices. Market risk is directly impacted by the volatility andliquidity in the markets in which the related underlying assets aretraded.

Credit risk is the possibility that a loss may occur dueto the failure of a counterparty to perform according to the terms of acontract. Credit risk with respect to exchange traded instruments isreduced to the extent that an exchange or clearing organization acts asa counterparty to the transactions. The Partnership's risk ofloss in the event of counterparty default is typically limited to theamounts recognized as unrealized appreciation in the statements offinancial condition and not represented by the contract or notionalamounts of the instruments. The Partnership has credit risk andconcentration risk because the sole counterparty or broker with respectto the Partnership's assets is CGM.

10

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

The General Partner monitors and controlsthe Partnership's risk exposure on a daily basis throughfinancial, credit and risk management monitoring systems, andaccordingly believes that it has effective procedures for evaluatingand limiting the credit and market risks to which the Partnership issubject. These monitoring systems allow the General Partner tostatistically analyze actual trading results with risk-adjustedperformance indicators and correlation statistics. In addition, on-linemonitoring systems provide account analysis of futures, forward andoption positions by sector, margin requirements, gain and losstransactions and collateral positions.

The majority of theseinstruments mature within one year of September 30, 2006. However, dueto the nature of the Partnership's business, these instrumentsmay not be held to maturity.

11

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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 on open futures and forward contracts and interestreceivable. Because of the low margin deposits normally required incommodity futures trading, relatively small price movements may resultin substantial losses to the Partnership. While substantial lossescould lead to a substantial decrease in liquidity, no such lossesoccurred in the third quarter of 2006.

The Partnership'scapital consists of capital contributions, as increased or decreased byrealized and/or unrealized gains or losses on commodity futures tradingand expenses, interest income, redemptions of Redeemable Units anddistributions of profits, if any.

For the nine months endedSeptember 30, 2006, Partnership capital decreased 22.6% from$69,726,554 to $53,965,635. This decrease was attributable to aredemption of 10,165.7383 Redeemable Units of Limited PartnershipInterest totaling $14,453,456, which was coupled with a net loss fromoperations of $1,307,463. Future redemptions can impact the amount offunds available for investment in commodity contract positions insubsequent periods.

Critical AccountingPolicies

The preparation of financial statements inconformity with U.S. Generally Accepted accounting principles requiresmanagement to make estimates and assumptions that affect the reportedamounts of assets and liabilities, disclosures of contingent assets andliabilities at the date of the financial statements and reportedamounts of revenues and expenses during the reporting period. Actualresults could differ from these estimates.

All commodityinterests (including derivative financial instruments and derivativecommodity instruments) are used for trading purposes. The commodityinterests are recorded on trade date and open contracts are recorded inthe statements of financial condition at fair value on the lastbusiness day of the period, which represents market value for thosecommodity interests for which market quotations are readily availableor other measures of fair value deemed appropriate by management of theGeneral Partner for those commodity interests and foreign currenciesfor which market quotations are not readily available. Investments incommodity interests denominated in foreign currencies are translatedinto U.S. dollars at the exchange rates prevailing on the last businessday of the period. Realized gains (losses) and changes in unrealizedvalues on open positions are recognized in the period in which thecontract is closed or the changes occur and are included in net gains(losses) on trading of commodity interests.

Foreign currencycontracts are those contracts where the Partnership agrees to receiveor deliver a fixed quantity of foreign currency for an agreed-uponprice on an agreed future date. Foreign currency contracts are valueddaily, and the Partnership's net equity therein, representingunrealized gain or loss on the contracts as measured by the differencebetween the forward foreign exchange rates at the dates of entry intothe contracts and the forward rates at the reporting date, is includedin the statements of financial condition. Realized gains (losses) andchanges in unrealized gains(losses) on foreign currency contracts arerecognized in the period in which the contract is closed or the changesoccur and are included in the statements of income and expenses andpartners' capital.

Results ofOperations

During the Partnership's third quarter of2006, the Net Asset Value per Redeemable Unit decreased 5.7%from $1,432.61 to $1,350.88 as compared to an increase of 0.6%in the third quarter of 2005. The Partnership experienced a net tradingloss before brokerage commissions and related fees in the third quarterof 2006 of $2,884,665. Losses were primarily attributable to thetrading of commodity futures in currencies, grains, metals, and U.S.and non-U.S. interest rates and were partially offset by gains inenergy, softs and indices. The Partnership experienced a net tradinggain before brokerage commissions and related fees in the third quarterof 2005 of $1,398,171. Gains were primarily attributable to the tradingof commodity futures in softs, energy, and indices and were partiallyoffset by losses in currencies, grains, U.S. and non-U.S. interestrates, and metals.

12

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The Fund sustained losses during thequarter in the currency and fixed income sectors due to economicuncertainty and posted only modest profits in equity and energy sectorsamid declining energy prices and rallying stock markets.

Losseswere made in the fixed-income sector during the quarter as the U. S.Treasury market continued to rally as inflation readings suggested acooling economy. The Fund also sustained losses as European bonds movedhigher amid European Central Bank's decision to hold its key ratesteady. Small losses were realized in the metals sector primarily dueto trading in copper and nickel as prices increased. The currencysector was mixed as losses in Euro positions were only partially offsetby profitable trading in the Japanese Yen.

Trading in equityindices was profitable especially in the European markets, as decliningbond yields and falling energy prices supported rallies. In the energysector, the Fund benefited from declining natural gas prices related toweather conditions and fluctuating demand for electricity.

During the Partnership's nine months ended September 30, 2006,the Net Asset Value per Redeemable Unit decreased 2.9% from$1,391.36 to $1,350.88 as compared to a decrease of 19.8% duringthe nine months ended September 30, 2005. The Partnership experienced anet trading gain before brokerage commissions and related fees duringthe nine months ended September 30, 2006 of $466,569. Gains wereprimarily attributable to the trading of commodity futures in metals,U.S. and non-U.S. interest rates, and indices and were partially offsetby losses in currencies, energy, grains and softs. The Partnershipexperienced a net trading loss before brokerage commissions and relatedfees during the nine months ended September 30, 2005 of $21,578,373.Losses were primarily attributable to the trading of commodity futuresin currencies, grains, U.S. and non-U.S. interest rates, metals, andindices are were partially offset by gains in energy and softs.

Commodity futures markets are highly volatile. The potentialfor broad and rapid price fluctuations increases the risks involved incommodity trading, but also increases the possibility of profit. Theprofitability of the Partnership depends on the existence of majorprice trends and the ability of the Advisor to correctly identify thoseprice trends. Price trends are influenced by, among other things,changing supply and demand relationships, weather, governmental,agricultural, commercial and trade programs and policies, national andinternational political and economic events and changes in interestrates. To the extent that market trends exist and the Advisor is ableto identify them, the Partnership expects to increase capital throughoperations.

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 nine months endedSeptember 30, 2006 increased by $1,184 and $163,476, respectively, ascompared to the corresponding periods in 2005. The increase in interestincome is primarily due to higher interest rates during the three andnine months ended September 30, 2006 as compared to the correspondingperiods in 2005.

Brokerage commissions are calculated as apercentage of the Partnership's adjusted net asset value on thelast day of each month and are affected by trading performance,additions and redemptions. Accordingly, they must be analyzed inrelation to the fluctuations in the monthly net asset values.Commissions and fees for the three and nine months ended September 30,2006 decreased by $383,151 and $1,226,559, respectively, as compared tothe corresponding period in 2005. The decrease in commissions wasprimarily due to lower average net assets during the three and ninemonths ended September 30, 2006 as compared to the correspondingperiods in 2005.

Management fees are calculated as a percentageof the Partnership's net asset value as of the end of each monthand are affected by trading performance, additions and redemptions.Management fees for the three and nine months ended September 30, 2006decreased by $145,488 and $452,584, respectively, as compared to thecorresponding periods in 2005. The decrease in management fees wasprimarily due to lower average net assets during the three and ninemonths ended September 30, 2006 as compared to the correspondingperiods in 2005.

13

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Administrative fees are paid to theGeneral Partner for administering the business and affairs of thePartnership. These fees are calculated as a percentage of thePartnership's net asset value as of the end of each month and areaffected by trading performance and redemptions. Administrative feesfor the three and nine months ended September 30, 2006 decreased by$36,373 and $113,147, respectively, as compared to the correspondingperiods in 2005. Administrative fees decreased due to lower average netassets during the three and nine months ended September 30, 2006 ascompared to the corresponding periods in 2005.

Incentive feesare based on the new trading profits generated by the Advisor at theend of the quarter as defined in the advisory agreements between thePartnership, the General Partner and the Advisor. There were noincentive fees earned for the three and nine months ended September 30,2006 and 2005.

14

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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 September 30, 2006, and the highest,lowest and average values during the three months ended September 30,2006. All open position trading risk exposures of the Partnership havebeen included in calculating the figures set forth below. As ofSeptember 30, 2006, the Partnership's total capitalization was$53,965,635. There has been no material change in the trading Value atRisk information previously disclosed in the Partnership's AnnualReport on Form 10-K for the year ended December 31, 2005.

September 30, 2006(Unaudited)

|                       |  |  |               |   |           |                         |  |  |                                     |  |        |                  |  |  |                      |   |           |  |  |  |  |   |         |  |  |  |  |   |           |  |
|-----------------------|--|--|---------------|---|-----------|-------------------------|--|--|-------------------------------------|--|--------|------------------|--|--|----------------------|---|-----------|--|--|--|--|---|---------|--|--|--|--|---|-----------|--|
|                  |  |  |          |   |           |                    |  |  | ThreeMonths Ended September 30,2006 |
| MarketSector          |  |  | Value at Risk |   |           | % ofTotalCapitalization |  |  | HighValue atRisk                    |  |        | LowValue at Risk |  |  | AverageValue atRisk* |
| Currencies:           |  |  |               |   |      |                         |  |  |                                     |  |   |                  |  |  |                      |   |      |  |  |  |  |   |    |  |  |  |  |   |      |  |
| –OTCContracts   |  |  |               | $ | 864,493   |                         |  |  |                                     |  | 1.60   | %                |  |  |                      | $ | 1,225,348 |  |  |  |  | $ | 336,141 |  |  |  |  | $ | 699,694   |  |
| Energy                |  |  |               |   | 83,000    |                         |  |  |                                     |  | 0.15   | %                |  |  |                      |   | 238,700   |  |  |  |  |   | 31,425  |  |  |  |  |   | 119,900   |  |
| Grains                |  |  |               |   | 75,750    |                         |  |  |                                     |  | 0.14   | %                |  |  |                      |   | 209,000   |  |  |  |  |   | 75,750  |  |  |  |  |   | 128,427   |  |
| InterestRatesU.S.     |  |  |               |   | 415,375   |                         |  |  |                                     |  | 0.77   | %                |  |  |                      |   | 415,375   |  |  |  |  |   | 22,752  |  |  |  |  |   | 199,113   |  |
| InterestRatesNon-U.S. |  |  |               |   | 982,437   |                         |  |  |                                     |  | 1.82   | %                |  |  |                      |   | 1,609,526 |  |  |  |  |   | 340,250 |  |  |  |  |   | 877,972   |  |
| Metals                |  |  |               |   |      |                         |  |  |                                     |  |   |                  |  |  |                      |   |      |  |  |  |  |   |    |  |  |  |  |   |      |  |
| –OTCContracts   |  |  |               |   | 177,243   |                         |  |  |                                     |  | 0.33   | %                |  |  |                      |   | 177,243   |  |  |  |  |   | 4,957   |  |  |  |  |   | 73,835    |  |
| Softs                 |  |  |               |   | 180,151   |                         |  |  |                                     |  | 0.34   | %                |  |  |                      |   | 246,065   |  |  |  |  |   | 143,100 |  |  |  |  |   | 167,258   |  |
| Indices               |  |  |               |   | 3,071,911 |                         |  |  |                                     |  | 5.69   | %                |  |  |                      |   | 3,122,537 |  |  |  |  |   | 275,273 |  |  |  |  |   | 1,727,627 |  |
| Total                 |  |  |               | $ | 5,850,360 |                         |  |  |                                     |  | 10.84  | %                |  |  |                      |   |      |  |  |  |  |   |    |  |  |  |  |   |      |  |
|                       |

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

15

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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, and under Part II, Item1, ‘‘Legal Proceedings’’ in thePartnership's Quarterly Reports on Form 10-Q for the quartersended March 31, 2006 and June 30, 2006.

EnronCorp.

In light of the settlement of the securities class action(Newby, et al. v. Enron Corp., et al.), the plaintiffs haveagreed to dismiss the following lawsuits against Citigroup and itsaffiliates: California Public Employees' Retirement System v.Banc of America Securities LLC, et al., Headwaters Capital LLC v. Layet al., and Variable Annuity Life Ins. Co. v. Credit SuisseFirst Boston Corp., et al. Plaintiffs in two other cases, which arenot part of the Newby class, have also voluntarily dismissedtheir claims against Citigroup and its affiliates: Steiner v. EnronCorp., et al. and Town of New Hartford v. Lay, et al.

Research

On August 17, 2006, the United StatesDistrict Court for the Southern District of New York approved the classaction settlement of Citigroup and its affiliates in In Re SalomonAnalyst AT&T Litigation, and on September 29, 2006 that samecourt approved the class action settlements in In Re Salomon AnalystLevel 3 Litigation, In Re Salomon Analyst XO Litigation and InRe Salomon Analyst Williams Litigation. 

On September 14,2006, Citigroup and its affiliates settled all claims in Sturm, etal. v. Citigroup, et al. The settlement was covered by existingreserves.

On October 6, 2006, the United States Court of Appealsgranted a review of the district court's decision certifying aplaintiff class in In Re Salomon Analyst MetromediaLitigation.

Adelphia CommunicationsCorporation

Defendant banks in In Re Adelphia CommunicationsCorporation Securities and Derivative Litiga tion, includingthe Citigroup Parties, have entered into settlement agreements with theLos Angeles County Employees Retirement Association and with TheDivision of Investment of the New Jersey Department of Treasury. TheCitigroup Parties' share of the settlement was covered byexisting reserves. 

Item 1A.    Risk Factors

There are no material changes from the risk factors set forth underPart I, Item 1A., ‘‘Risk Factors’’ in ourAnnual Report on Form 10-K for the fiscal year ended December 31,2005.

Item 2.    Unregistered Sales of EquitySecurities and Use of Proceeds

The following chart setsforth the purchases of 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 |
| July 1, 2006– July 31,2006           |  |  | 341.7861                            |  |  | $1,392.83                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
| August1, 2006 – August 31,2006       |  |  | 382.9093                            |  |  | $1,342.89                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
| September1, 2006 – September 30,2006 |  |  | 502.9215                            |  |  | $1,350.88                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
|                                       |  |  | 1,227.6169                          |  |  | $1,362.20                        |  |  | N/A                                                                               |  |  | N/A                                                                                                           |
|                                            |

17

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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 to be filed by Item 601of Regulation S-K are incorporated herein by reference to the exhibitindex of the Partnership's Annual Report on Form 10-K for theperiod 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). |

18

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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:  |  |  | November14,2006                                  |
| By:    |  |  | /s/JenniferMagro                                 |
|   |  |  | JenniferMagroChief Financial Officer andDirector |
| Date:  |  |  | November14, 2006                                 |
|        |

19

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