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A magnetic powder for magnetic recording is provided that has improved properties suitable for a magnetic recording medium used with a high-sensitivity read head utilizing an MR device. The magnetic powder is composed of iron-base acicular particles containing Co, Al, R (rare earth elements, including Y) and oxygen within the ranges of Co / Fe = 10 - 50 at.%, dissolved Al / (Fe + Co) = 5 - 50 at.%, R / (Fe + Co) = 2 - 25 at.% and oxygen = not greater than 25 wt%; and the acicular particles have an average major axis length of 25 - 80 nm and a saturated magnetization sigma s of 10 - 130 emu/g