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I found this at the base of a wooden support in a very damp basement of a home built in the 1930's. There were three other support posts, all on slightly raised concrete piers. One had a trace of this substance, the others had none. You can see the moisture levels!! There were no galleries, no insect parts, and the wood seemed sound except for about 3/8 of an inch of this reddish stuff which pulled away easily. I'd appreciate any and all thoughts.

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Out in the yard yesterday trying to cap off my supply of firewood for the winter, I pulled a log up from a strewn pile, and noticed something that looked exactly like that growing off the end in a small bunch. That end was setting in a damp pile of chainsaw dust and such. Looked like some kind of fungus, so I would tend to agree with Bill. Of course I'm not so fancy as to know the scientific name of the fungus like he does. Show off.

Not so sure there are Powder Post Beetle exit holes there... kinda hard to tell from the picture.

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Thanks for the responses. I saw no exit holes, and Powder Post Beetles produce a dry dust from my experience. Fungus fits, or some sort of wood destroying organism. I feel like I've seen this before, so maybe your wood pile scenario works. My larger concern is; in this 70+ year old home, why is this happening now? The current tenant states that she has never had water in the basement in the last seven years. Regardless, the basement was very wet...smelled like mold, and note the 84% on my moisture meter !!!!

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