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Magnolia ‘Big Dude’ - Graft Union and Root Stock Decay?

I have a young Magnolia ‘Big Dude’ (about 5.5 ft tall) with some sort of wood decay on the graft union and below the rootstock. Last fall, I noticed the outer wood on the front side of the graft union was soft to the touch and crumbled a bit when pressed on (it exposed some hard wood underneath). I also observed a piece of soft wood on the front side of root stock which flaked off. The backside of the graft union, root stock and root system appear healthy. **This magnolia was placed in a buried pot for the majority of last season before planting this spring. We did experience some drought last summer in SW Ohio.** I did scratch tests above the graft union and below the root stock which showed green underneath. The magnolia currently has healthy leaf buds. Is there anything specific I should do to treat this issue? Or is it doomed for failure? Unsure if it is sun scald, a frost crack or some sort of disease.




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