Cedar is "the" fence material here in Central TX and the climate is largely warm and humid. I agree with the others: Be too afraid of locking moisture in by using sealant. The one exception is sealing the endgrain, since that is like a wick and sends the moisture straight through to ground level, where it will rot the post out at the base. But I would physically cap the post it in that situation. Can you post a pic of what you are trying to seal?
Erik
Ex-SCM and Felder rep
I am not quite sure I understand the use case, but it sounds like what you might actually want is chinking.