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Hi, I recently bought some chinese lacebark elm seedlings online and while most of them are in good shape, 4-5 have slightly squishy roots. Two of those have visible mold/fungus. a representative picture is below.





I separated the two worst seedlings from the rest and planted them in a very well draining mix of 60% pummice, 20% perlite, and 20% soil.




I left the uppermost portions of the main tap root above the surface in hopes that it would dry out even more.

Does anyone know if fungicide would help this problem? Are there any easier solutions? Any other advice?

Brush the mould off and let it dry. With plants that size they would have been better singly so they could grow on for a few years. I don't think there is any need for fungicide, just let them dry. That is of course if you are not going to send them back and get a refund

this is a perfect example of root rot.the roots died and stared decomposing the mold suffocates the living roots and will eventually kill the plant. your well draining soil should help the problem