Raced around wood (5)
I believe the answer is:
cedar
'wood' is the definition.
(cedar is a kind of wood)
'raced around' is the wordplay.
'around' indicates anagramming the letters.
'raced' anagrammed gives 'CEDAR'.
(Other definitions for cedar that I've seen before include "Evergreen tree" , "may have needles?" , "Cypress-like tree" , "Fragrant conifer" , "Raced around a mighty tree" .)