Through energy minimization and stability argument, we find the ground
states of the magnetorheological fluids to consist of magnetic partic
les arranged in a body centered tetragonal structure inside spheroidal
clusters. The width D of the clusters varies with the length L as D s
imilar to L-n where n = 0.62 for magnetically saturated particles. In
the case of magnetically unsaturated particles, the power law variatio
n is divided into two segments, with it = 0.4 in the first segment and
n = 0.62 in the large L limit. Our results offer a theoretical framew
ork for the resolution of conflicting experimental observations, with
the demagnetization field being the crucial physical consideration.