Quote:
This most likely happened because the wood pellets (extremely high carbon ratio) tied up all of the nitrogen in your soil. There was nothing toxic or "bad" about the pellets, but the carbon sucks up nitrogen in the soil like a sponge. Plants without adequate nitrogen will be yellow, stunted, and can die. You would have had to wait until the pellets really began to break down or have added a large amount of nitrogen fertilizer...not a good idea. You might need to add a little extra nitrogen to that plot this year, but I would guess you won't have any problems after the wood has had a year to decompose.
Just another note; if the wood (pellets/shavings/bark mulch) is only applied ON the surface as a mulch and is not worked into the soil, it does little to affect the carbon:nitrogen in the root zone.