UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2006

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-51086

ML CORNERSTONE FUTURESACCESS LLC

(Exact Name of Registrant as specified in its charter)

Delaware		20-1227929
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)

c/o Merrill Lynch Alternative Investments LLC

Princeton Corporate Campus

800 Scudders Mill Road - Section 2G

Plainsboro, New Jersey 08536

(Address of principal executive offices)
(Zip Code)

609-282-6996

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes o No x

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes o No x

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

Yes x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part II of this Form 10-Q or any amendment to this Form 10-Q. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o

Accelerated filer o

Non-accelerated filer x

Indicate by check mark if the registrant is a shell company (as defined by Rule 12b-2 of the Act).

Yes o No x

ML CORNERSTONE FUTURESACCESS LLC

QUARTERLY REPORT FOR JUNE 30, 2006 ON FORM 10-Q

Table of Contents

		PAGE
PART I

Item 1.	Financial Statements	2

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12

Item 4.	Controls and Procedures	12

PART II

Item 1.	Legal Proceedings	13

Item 2.	Changes in Securities and Use of Proceeds	13

Item 3.	Defaults Upon Senior Securities	13

Item 4.	Submission of Matters to a Vote of Security Holders	13

Item 5.	Other Information	13

Item 5a.	Recent Sales of Unregistered Securities: Uses of Proceeds From Registered Securities	14

Item 6.	Exhibits	14

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ML CORNERSTONE FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION

	June 30,		December 31,
	2006		2005
	(unaudited)

ASSETS:
Equity in commodity futures trading accounts:
Cash	$	104,630,600	$	58,685,484
Net unrealized profit on open contracts	1,842,213		1,466,683
Cash	136,909		—
Prepaid expenses	143,374		—
Accrued interest	396,744		196,419

TOTAL	$	107,149,840	$	60,348,586

LIABILITIES AND MEMBERS’ CAPITAL:
LIABILITIES:
Brokerage commissions payable	$	47,212	$	30,999
Management fee payable	174,800		99,205
Sponsor’s fee payable	185,735		104,683
Incentive fee payable	1,961,042		521,565
Redemptions payable	554,452		172,097
Initial offering costs payable	95,425		110,118
Other payables	—		114,819

Total liabilities	3,018,666		1,153,486

MEMBERS’ CAPITAL:
Sponsor’s Capital (21,248 and 21,248 Units issued and outstanding)	22,382		20,373
Members’ Capital (98,918,717 and 61,779,296 Units issued and outstanding)	104,108,792		59,174,727

Total members’ capital	104,131,174		59,195,100

TOTAL LIABILITIES AND MEMBERS’ CAPITAL	$	107,149,840	$	60,348,586

NET ASSET VALUE PER UNIT (Note 2)

See notes to financial statements.

ML CORNERSTONE FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF OPERATIONS

(unaudited)

	For the three			For the three			For the six			For the five
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
	2006			2005			2006			2005 (1)
TRADING PROFITS (LOSSES):

Realized	$	3,817,829		$	(1,036,575	)	$	8,966,557		$	(1,202,141	)
Change in unrealized	(100,257		)	216,105			375,672			(227,453		)
Brokerage commissions	(118,261		)	(29,566		)	(204,014		)	(47,692		)
Total trading profits (losses)
	3,599,311			(850,036		)	9,138,215			(1,477,286		)
INVESTMENT INCOME:
Interest	1,086,277			141,337			1,806,477			166,134

EXPENSES:
Management fee	481,532			110,089			833,103			134,936
Sponsor’s fee	512,621			123,151			884,939			151,087
Incentive fee	790,866			—			1,961,042			—
Other	241,939			31,178			291,685			51,765
Total expenses before reimbursement	2,026,958			264,418			3,970,769			337,788
Sponsor’s fee reimbursement	—			—			—			(6,032		)

Total expenses	2,026,958			264,418			3,970,769			331,756

NET INVESTMENT LOSS	(940,681		)	(123,081		)	(2,164,292		)	(165,622		)

NET INCOME (LOSS)	$	2,658,630		$	(973,117	)	$	6,973,923		$	(1,642,908	)

NET INCOME (LOSS) PER UNIT:

Weighted average number of Units outstanding
Class A	13,252,787			2,775,441			12,138,648			1,755,844
Class C	65,272,042			18,859,362			57,511,221			11,476,357
Class D	2,133,110			346,215			1,765,998			173,107
Class I	9,429,816			1,760,022			8,510,427			1,078,372

Net income (loss) per weighted average Units
Class A	$	0.0339		$	(0.0365	)	$	0.0948		$	(0.1111	)
Class C	$	0.0285		$	(0.0414	)	$	0.0849		$	(0.1134	)
Class D	$	0.0128		$	(0.0314	)	$	0.0724		$	(0.0629	)
Class I	$	0.0344		$	(0.0460	)	$	0.0954		$	(0.1253	)

(1) commencement of operations February 1, 2005

See notes to financial statements.

ML CORNERSTONE FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL
For the six months ended June 30, 2006 and the five months ended June 30, 2005
(unaudited)

	Initial Offering	Initial Offering Costs	Subscriptions	Redemptions		Net Loss	Members’ Capital June 30, 2005	Members’ Capital December 31, 2005	Subscriptions	Redemptions		Net Income	Members’ Capital June 30, 2006

Class A	729,300	—	2,474,772	(19,500	)	—	3,184,572	10,021,657	5,171,712	(704,991	)	—	14,488,378
Class C	4,211,000	—	18,778,841	(391,262	)	—	22,598,579	43,063,748	30,460,936	(2,275,380	)	—	71,249,304
Class D	—	—	375,972	—		—	375,972	1,398,885	1,668,011	—		—	3,066,896
Class I	287,000	—	2,099,973	(10,000	)	—	2,376,973	7,295,006	2,946,036	(126,903	)	—	10,114,139

Total Members’ Units	5,227,300	—	23,729,558	(420,762	)	—	28,536,096	61,779,296	40,246,695	(3,107,274	)	—	98,918,717

Class A	—	—	10,611	—		—	10,611	10,611	—	—		—	10,611
Class C	—	—	10,637	—		—	10,637	10,637	—	—		—	10,637
Class D	—	—	—	—		—	—	—	—	—		—	—
Class I	—	—	—	—		—	—	—	—	—		—	—

Total Sponsor’s Units	—	—	21,248	—		—	21,248	21,248	—	—		—	21,248

See notes to financial statements.

ML CORNERSTONE FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL
For the six months ended June 30, 2006 and the five months ended June 30, 2005
(unaudited)
(continued)

	Initial Offering		Initial Offering Costs			Subscriptions		Redemptions			Net Loss			Members’ Capital June 30, 2005		Members’ Capital December 31, 2005		Subscriptions		Redemptions			Net Income		Members’ Capital June 30, 2006

Class A	$	729,300	$	(22,714	)	$	2,347,773	$	(19,202	)	$	(194,651	)	$	2,840,506	$	9,635,030	$	5,303,826	$	(723,952	)	$	1,149,716	$	15,364,620
Class C	4,211,000		(101,777		)	17,680,779		(362,096		)	(1,301,322		)	20,126,584		41,024,353		30,787,003		(2,290,913		)	4,882,757		74,403,200
Class D	—		(3,189		)	376,111		—			(10,888		)	362,034		1,466,886		1,949,999		—			127,824		3,544,709
Class I	287,000		(16,335		)	1,996,959		(8,998		)	(135,095		)	2,123,531		7,048,458		3,068,933		(132,745		)	811,617		10,796,263

Total Members’ Interests	$	5,227,300	$	(144,015	)	$	22,401,622	$	(390,296	)	$	(1,641,956	)	$	25,452,655	$	59,174,727	$	41,109,761	$	(3,147,610	)	$	6,971,914	$	104,108,792

Class A	$	—	$	—		$	10,000	$	—		$	(468	)	$	9,532	$	10,221	$	—	$	—		$	1,044	$	11,265
Class C	—		—			10,000		—			(484		)	9,516		10,152		—		—			965		11,117
Class D	—		—			—		—			—			—		—		—		—			—		—
Class I	—		—			—		—			—			—		—		—		—			—		—

Total Sponsor’s Interest	$	—	$	—		$	20,000	$	—		$	(952	)	$	19,048	$	20,373	$	—	$	—		$	2,009	$	22,382

Total Members’ Capital	$	5,227,300	$	(144,015	)	$	22,421,622	$	(390,296	)	$	(1,642,908	)	$	25,471,703	$	59,195,100	$	41,109,761	$	(3,147,610	)	$	6,973,923	$	104,131,174

See notes to financial statements.

ML CORNERSTONE FUTURESACCESS LLC
(a Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS
(unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In the opinion of management, the financial statements contain all adjustments necessary to present fairly the financial position of ML Cornerstone FuturesAccess LLC (the “Fund”) as of June 30, 2006, and the results of its operations for the three and six months ended June 30, 2006 and for the three and five months 2005, respectively. However, the operating results for the interim periods may not be indicative of the results for the full year. The Fund commenced trading activities on February 1, 2005. Therefore, the Statements of Operations and Statements of Changes in Members’ Capital contain information only for the five month period ended June 30, 2005.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Fund’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the period ended December 31, 2005.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

2. NET ASSET VALUE PER UNIT

For financial reporting purposes, in conformity with US GAAP, the Fund deducted the total initial offering costs at inception from Members’ Capital for purposes of determining Net Asset Value. For all other purposes, including computing Net Asset Value for purposes of member subscription and redemption activity, such costs are amortized over 60 months. Consequently, the Net Asset Value and Net Asset Value per Unit of the different Classes for financial reporting purposes and for all other purposes are as follows:

At June 30, 2006 the Net Asset Values of the different series of Units are as follows:

	Net Asset Value					Net Asset Value per Unit
	All Other Purposes		Financial Reporting		Number of Shares	All Other Purposes		Financial Reporting
Class A	$	15,391,572	$	15,375,885	14,498,989	$	1.0616	$	1.0605
Class C	74,480,147		74,414,317		71,259,941	$	1.0452	$	1.0443
Class D	3,547,086		3,544,709		3,066,896	$	1.1566	$	1.1558
Class I	10,807,794		10,796,263		10,114,139	$	1.0686	$	1.0674
	$	104,226,599	$	104,131,174	98,939,965

At December 31, 2005 the Net Asset Values of the different series of Units are as follows:

	Net Asset Value					Net Asset Value per Unit
	All Other Purposes		Financial Reporting		Number of Shares	All Other Purposes		Financial Reporting
Class A	$	9,663,194	$	9,645,251	10,032,268	$	0.9632	$	0.9614
Class C	41,110,839		41,034,505		43,074,385	$	0.9544	$	0.9526
Class D	1,469,615		1,466,886		1,398,885	$	1.0506	$	1.0486
Class I	7,061,570		7,048,458		7,295,006	$	0.9680	$	0.9662
	$	59,305,218	$	59,195,100	61,800,544

3. FAIR VALUE AND OFF-BALANCE SHEET RISK

The nature of this Fund has certain risks, which cannot all be presented on the financial statements. The following summarizes some of those risks.

Market Risk

Derivative instruments involve varying degrees of off-balance sheet market risk. Changes in the level or volatility of interest rates, foreign currency exchange rates or the market values of the financial instruments or commodities underlying such derivative instruments frequently result in changes in the Fund’s net unrealized profit (loss) on such derivative instruments as reflected in the Statement of Financial Condition. The Fund’s exposure to market risk is influenced by a number of factors, including the relationships among the derivative instruments held by the Fund as well as the volatility and liquidity of the markets in which the derivative instruments are traded.

The Sponsor of the Fund, Merrill Lynch Alternative Investments LLC (“MLAI”), has procedures in place intended to control market risk exposure, although there can be no assurance that they will, in fact, succeed in doing so. These procedures focus primarily on monitoring the trading of Cornerstone Trading Company, Inc. (“Cornerstone”), the trading advisor, calculating the Net Asset Value of the Fund as of the close of business on each day and reviewing outstanding positions for over-concentrations. While MLAI does not itself intervene in the markets to hedge or diversify the Fund’s market exposure, MLAI may urge Cornerstone to reallocate positions in an attempt to avoid over-concentrations. However, such interventions are expected to be unusual. It is expected that MLAI’s basic risk control procedures will consist of the ongoing process of advisor monitoring, with the market risk controls being applied by Cornerstone itself.

Credit Risk

The risks associated with exchange-traded contracts are typically perceived to be less than those associated with over-the-counter (non-exchange-traded) transactions, because exchanges typically provide clearinghouse arrangements in which the collective credit (in some cases limited in amount, in some cases not) of the members of the exchange is pledged to support the financial integrity of the exchange. In over-the-counter transactions, on the other hand, traders must rely solely on the credit of their respective individual counterparties. Margins, which may be subject to loss in the event of a default, are generally required in exchange trading, and counterparties may also require margin in the over-the-counter markets.

The credit risk associated with these instruments from counterparty nonperformance is the net unrealized profit, if any, included in the Statement of Financial Condition. The Fund attempts to mitigate this risk by dealing exclusively with Merrill Lynch & Co., Inc. (“Merrill Lynch”) entities as clearing brokers.

The Fund, in its normal course of business, enters into various contracts, with Merrill Lynch Pierce Fenner & Smith Inc. (“MLPF&S”) acting as its commodity broker. Pursuant to the brokerage arrangement with MLPF&S (which includes a netting arrangement), to the extent that such trading results in receivables from and payables to MLPF&S, these receivables and payables are offset and reported as a net receivable or payable and included in equity from commodity futures trading accounts in the Statement of Financial Condition.

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

MONTH-END NET ASSET VALUE PER UNIT (1)

(NON US GAAP)

Class A

	Jan.		Feb.		Mar.		Apr		May		Jun
2005	n/a		$	0.9847	$	0.9286	$	0.9424	$	0.9291	$	0.8983
2006	$	0.9693	$	0.9888	$	1.0245	$	1.0621	$	1.0737	$	1.0616

Class C

	Jan.		Feb.		Mar.		Apr		May		Jun
2005	n/a		$	0.9839	$	0.9271	$	0.9401	$	0.9260	$	0.8946
2006	$	0.9597	$	0.9781	$	1.0125	$	1.0484	$	1.0574	$	1.0452

Class D

	Jan.		Feb.		Mar.		Apr		May		Jun
2005	n/a		n/a		n/a		$	1.0161	$	1.0031	$	0.9710
2006	$	1.0585	$	1.0812	$	1.1222	$	1.1632	$	1.1780	$	1.1566

Class I

	Jan.		Feb.		Mar.		Apr		May		Jun
2005	n/a		$	0.9850	$	0.9292	$	0.9433	$	0.9303	$	0.8998
2006	$	0.9745	$	0.9944	$	1.0310	$	1.0683	$	1.0798	$	1.0686

(1) Represents Net Asset Value per unit for all other purposes as discussed in Note 2 to the Financial Statements.

Performance Summary

January 1, 2006 to June 30, 2006

January 1, 2006 to March 31, 2006

The Fund posted an overall gain for the quarter with interest rates, energy, and metal sectors posting gains while agricultural and currencies sectors posted losses.

The interest rate sector was the most profitable for the Fund. Although the Fund was generally net short, the best performer in Short Rate Asset Allocation was a long position in the Canadian market. In addition, the Fund was modestly profitable in a short position in Eurodollar futures. These positions continued to be profitable through mid-quarter as the market priced in roughly one more U.S. Federal Reserve tightening than had been anticipated in January. Our other major short term interest rate position, short Euribor (Euro denominated three month interest rate) futures, was modestly profitable as well as the consensus shifted to expect still stronger economic growth in Europe. Interest rates went up at the end of the quarter and the strategy was short fixed income. In particular, the Fund was short and did well in German bunds, Euribor and Eurodollars.

The energy sector posted the second highest profit for the Fund. The best performer for the Fund was a short position in natural gas. A continued mild winter in the U.S. has contributed to lower prices. Excellent performance mid-quarter was mainly due to the energy markets, most of which were short. In particular, natural gas futures dropped around 30%. However, by the end of the quarter, the energy sector short positions adversely affected the Fund.

The metals sector posted profits for the Fund. Profits were generated in the metals sector even through a volatile climate. The quarter ended with the bullish speculative environment fueling long term trends.

The agricultural sector posted losses for the Fund. The agricultural market was soft which attributed to the difficult trading environment resulting in the Fund posting losses for this sector.

The currency sector was the least profitable for the Fund. Currency Asset Allocation continued to struggle the beginning of the quarter losing money in short positions in the Australian dollar. The Fund has closed out all currency positions and will probably not re-enter until the U.S. dollar shifts to negative momentum.

April 1, 2006 to June 30, 2006

The Fund posted an overall gain for the quarter with interest rate, metals, currency and energy sectors posting gains while the agricultural sector posted a loss.

The interest rate sector was the most profitable for the Fund. The Bond Asset Allocation posted profits for the Fund due to short positions in German bunds. German bunds decreased in price as the European Central Bank continued to ruminate about the possibility of inflation rates above levels the bank is comfortable with. However, long-term bonds were the worst performer mid-quarter with most of the losses coming from a short position in the German bund. The likelihood of an extended interest rate advantage for the U.S. dollar was one factor behind its rally at the end of the quarter. The quarter ended with modest contributions with returns short in the U.S. and Euro-zone interest rates.

The metals sector posted the second highest profit for the Fund. Base metals produced around 0.8% return on NAV at the beginning of the quarter despite having only roughly a 2% risk allocation. The best performing position for the Fund was to have a long position in both aluminum and copper with copper posting the highest gains for the Fund. As the metal prices increased, the mid-quarter strategy to cut positions to keep a constant dollar exposure worked out well due to the fact this was done when prices were near their peaks. Base metal markets contributed a great deal of volatility as long-standing in the copper market was down 15% at the end of the quarter. However, by the end of the quarter the effect on the returns was small.

The currency sector posted profits for the Fund. The Currency Asset Allocation portfolio, in U.S. dollar terms, was long British pounds and Japanese yen and short Australian dollars, with a net U.S. dollar short. This position was profitable as the U.S. dollar declined against the major currencies. The strategy with long positions in the British pound produced most of the gain mid-quarter offsetting losses in the Australian dollar. International value had difficulty in the currency markets quarters-end in the long Japanese yen/short U.S. dollar position that reversed May’s gains. The quarter ended with the currency markets expecting the end of the U.S. Federal Reserve’s current tightening cycle to be further away than previously thought.

The energy sector posted profits for the Fund. The energy sector posted profits for the Fund during a very volatile period on the Iran/U.S./Europe “Nuclear Standoff”. The end of the quarter, once again, forced the sector into a period of increased volatility, as both military and terrorist activities in the key energy production areas led to rising energy prices.

The agricultural sector posted losses for the Fund. The agricultural market was soft which attributed to the difficult trading environment resulting in the Fund posting losses for this sector.

February 1, 2005 to June 30, 2005

February 1, 2005 to March 31, 2005

The Fund posted a loss for the first quarter of 2005. The currency and interest rate sectors were unprofitable while the energy sector posted a small profit for the quarter.

The largest losses were in the Currency Asset Allocation sector and the Short Rate Asset Allocation sector. The Fund was long Eurodollars, which dropped in price, and short in the European markets, which rose in price. This occurred because the models identified the term structure as over discounting future rate increases. Despite that, U.S. rates went up and European rates went down. The Fund is long the U.S. and short Europe, with a short bias.

In the currency market, solid gains were posted, at the beginning of the period, due to the long Sterling/short U.S. dollar position. The currency positions were left unchanged in February. A current important driver of this position is the United States’ poor balance of payments position. In March, the U.S. dollar rallied strongly as the U.S. economy remained strong and the U.S. Federal Reserve spoke openly about inflation concerns. Inflation is generally bad for a country’s currency but in this case the market interpreted these statements as a signal that short-term rates would rise more than expected. Rising interest rates tend to be supportive of a country’s currency. Losses were incurred in the British pound and the Japanese yen. Toward the end of the period, the Fund reduced its exposure to the U.S. dollar as the momentum shifted by cutting the British pound and Japanese yen positions and going more short with the Euro. The Fund currently has a small short U.S. dollar exposure.

The interest rate sector had the greatest loss for the Fund. The Fund began trading in February and had lackluster performance in short-term interest rates. Though the Fund was net short on these instruments globally in February, it was long U.S. short-term interest rates which decreased in price more than the shorts. Over the course of the month, the Fund added modestly to its net short position, and continued to adjust the short interest rate position more often than was typical for their trading program.

April 1, 2005 to June 30, 2005

The Fund posted a loss for the second quarter of 2005. Losses were posted in all sectors.

The interest rate sector posted a small loss for the Fund. The Short Rate Asset Allocation model benefited from the rally at the front end of the U.S. yield curve during the beginning of the quarter, though these gains were largely offset by losses sustained early on by being short Euribor futures. Growth expectations for Europe were again reduced leading to a rally in Euro denominated fixed income. The Euribor short was removed and the Fund was left with an average sized net long position in global term interest rates. Mid-quarter, the short rate model proved to be moderately profitable as a basket of long positions in the United States, the United Kingdom, and Canada did well. In the U.S., the Fund had good timing as it increased its position after the strong U.S. employment report. The Eurodollars recovered completely and the Fund took long positions in the short end of the yield curve, primarily in the U.S. In the bond markets, there remained a battle between fundamentals and momentum. The end of the quarter saw poor performance in many of the Fund’s strategies. The Bond Asset Allocation strategy had a brief short position, expressed mainly in Japanese government bonds, which was unprofitable. Modest short positions were taken in the Japanese, German, and Australian government bond markets and money was lost on being short the short term interest rates in June. The expectation in the markets was for the Euro denominated short term interest rates to go down in price and up in rate. In June,

European growth again disappointed and speculation began to build about a European Central Bank rate cut.

The Fund posted a loss in the energy sector. The quarter began with a gain because the Fund added additional fundamental information to the crude oil trading that it had long included in the trend analysis component of international value. The Fund continued to trade this market with a systematic, or model based, approach but the importance of the technical component decreased. The Fund then focused its research on real commodities. It continued to move the non-financials it traded over to fundamental models, most recently natural gas. The research is continued with the goal of moving more energy contracts to this mixed fundamental and technical framework.

The currency sector was the poorest performing sector for the quarter. The Currency Asset Allocation strategy led International Value higher in April thanks to U.S. dollar weakness against the Japanese yen and U.K. sterling. The Fund added to its position to create a large U.S. dollar short. However, the losses were driven by the currency model and the losses in the currency model were driven by the Fund’s long Japanese yen position. The U.S. dollar appreciated mid-quarter as a result of economic strength in the U.S. The Euro, in particular, suffered because of continued economic weakness and concerns about the fate of the European constitution. Related to this, interest rate differentials continued to move in favor of the U.S. currency. However, the Fund’s models identified the balance of payments imbalances that the U.S. suffers relative to the rest of the world as a major negative factor for the U.S. dollar. As a result, the Fund retains its long Japanese yen position against being short the U.S. dollar and the Euro.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable

Item 4. Controls and Procedures

MLAI, the Sponsor of ML Cornerstone FuturesAccess LLC, with the participation of the Sponsor’s Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with respect to the Fund as of the end of the period of this quarterly report, and, based on this evaluation, has concluded that these disclosure controls and procedures are effective. Additionally, there were no significant changes in the Fund’s internal controls or in other factors that could significantly affect these controls subsequent to the date of this evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Neither the Fund nor MLAI has ever been the subject of any material litigation. Merrill Lynch is the 100% indirect owner of MLAI, MLPF&S and all other Merrill Lynch entities involved in the operations of the Fund. Merrill Lynch as well as certain of its subsidiaries and affiliates have been named as defendants in civil actions, arbitration proceedings and claims arising out of their respective business activities. Although the ultimate outcome of these actions cannot be predicted at this time and the results of legal proceedings cannot be predicted with certainty, it is the opinion of management that the result of these matters will not be materially adverse to the business operations or the financial condition of MLAI or the Fund.

Item 2.	Changes in Securities and Use of Proceeds

	(a) None.
	(b) None.
	(c) None.
	(d) None.

Item 3.	Defaults Upon Senior Securities

	None.

Item 4.	Submission of Matters to a Vote of Security Holders

	None.

Item 5.	Other Information

	None.

Item 5(a). Recent Sales of Unregistered Securities: Uses of Proceeds From Registered Securities:

Issuance to accredited investors pursuant to Regulation D and Section 4(6) under the Securities Act. The selling agent of the following Class of Units was MLPF&S.

CLASS A

	Subscription
	Amount		Units	NAV (1)
Jan-06	$	641,544	666,055	$	0.9632
Feb-06	306,145		315,841	0.9693
Mar-06	1,054,763		1,066,710	0.9888
Apr-06	934,029		911,693	1.0245
May-06	645,425		607,688	1.0621
Jun-06	1,721,920		1,603,725	1.0737
Jul-06	1,263,049		1,189,760	1.0616

CLASS C

	Subscription
	Amount		Units	NAV (1)
Jan-06	$	3,822,939	4,005,594	$	0.9544
Feb-06	2,749,933		2,865,409	0.9597
Mar-06	5,091,868		5,205,877	0.9781
Apr-06	5,905,887		5,832,975	1.0125
May-06	6,422,893		6,126,376	1.0484
Jun-06	6,793,483		6,424,705	1.0574
Jul-06	7,564,743		7,237,603	1.0452

CLASS D

	Subscription
	Amount		Units	NAV (1)
Jan-06	$	—	—	$	1.0506
Feb-06	—		—	1.0585
Mar-06	—		—	1.0812
Apr-06	300,000		267,332	1.1222
May-06	—		—	1.1632
Jun-06	1,649,999		1,400,679	1.1780
Jul-06	577,101		498,963	1.1566

CLASS I

	Subscription
	Amount		Units	NAV (1)
Jan-06	$	97,927	101,164	$	0.9680
Feb-06	249,000		255,516	0.9745
Mar-06	148,873		149,711	0.9944
Apr-06	1,193,282		1,157,403	1.0310
May-06	437,997		409,994	1.0683
Jun-06	941,854		872,248	1.0798
Jul-06	1,686,809		1,578,522	1.0686

Item 6. Exhibits

The following exhibits are incorporated by reference or are filed herewith to this Quarterly Report on Form 10-Q:

31.01 and

31.02 Rule 13a-14(a)/15d-14(a) Certifications

Exhibit 31.01

and 31.02: Are filed herewith.

32.01 and

32.02 Section 1350 Certifications

Exhibit 32.01

and 32.02 Are filed herewith.

SIGNATURES

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

ML CORNERSTONE FUTURESACCESS LLC

	By: MERRILL LYNCH ALTERNATIVE
	INVESTMENTS LLC
			(General Partner)


Date: August 14, 2006	By	/s/ BENJAMIN WESTON
		Benjamin Weston
		Chief Executive Officer and President
		(Principal Executive Officer)


Date: August 14, 2006
	By	/s/ MICHAEL L. PUNGELLO
		Michael L. Pungello
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

ML Cornerstone FuturesAccess LLC 10-Q