Transom Wood

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I'd recommend BCX grade plywood sealed with Old Timers Formula.
 
Cedar has some rot resistance, but will still need to be sealed if you want it to last. If you wanted solid wood, I would opt for white oak instead of cedar. Again, still need to seal it.

I agree with the previous rec's for BCX sealed. The beauty of BCX plywood, IMO, is that it will be highly stable and is made for exterior use. But again, you still have to seal it.
 
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