This may be early signs of collar rot. Collar Rot is a type of soil fungus that attacks the tree trunk at ground level and if left untreated can kill the tree. Oozing bark and yellowing foliage. Avoid wetting the trunk when watering and make sure garden mulch is well away from the base of the trees trunk. Check your soil drainage. Cut back the bark with a sharp knife until undamaged bark is reached is the main treatment. You can also try applying Yates Fungus Fighter to your lemon trees trunk when the paste begins to fade in colour. It can be reapplied up to 5 times until natural healing commences. Yates Anti Rot also treats collar rot.
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