There are advantages and drawbacks for both types of wood depending on what type of fence you plan to build with the materials. As this article states both can be very useful for your fence needs.
Pressure treated wood is a better choice for your fence if you are building a picket fence that will be touching the ground. However cedar is better if your fence will not be touching the ground. Cedar wood is more durable than treated wood. It will not warp or break like other woods may. But, cedar is more expensive for this very reason. This high cost is worth it in the long run, though, due to the long lifespan of cedar. In order to increase its strength, Pressure treated wood should be stained within the first two years of its use.
Bottom line, cedar is a stronger wood. If your fence will not be touching the ground—then it should be your choice. However if you are limited by budget constraints pressure treated wood does the job well.
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