The most common technique to fabricate $MgB_2$ superconducting wire is by powder-in-tube (PIT) technique. Therefore, the starting powder for the processing of $MgB_2$ superconductors is an important factor influencing the superconducting properties and performance of the conductors. In this study, the influence of magnesium precursor powders and annealing temperatures on the transition temperatures ($T_c$) and critical current densities ($J_c$) of $MgB_2/Fe$ wires was investigated. All the $MgB_2/Fe$ wires were fabricated by in situ PIT process. It was found that higher $J_c$ was obtained for $MgB_2$ wires with smaller particle size of magnesium precursor powders. The $J_c$ also increases with decreasing annealing temperatures.