Pencil cactus can be repotted and transplanted or cut and propagated with minimal effort. If your goal is to create new plants for future containers or sharing with friends, consider propagating from cuttings. Transplant this if your goal is to provide a larger container for the pencil cactus or to move it to a more desirable location.
Exercise caution when handling this euphorbia -- the plant's rubbery latex sap is a strong irritant. Wear protective gloves while working with the pencil cactus, especially if you are sensitive to latex. Always wash your hands when finished working with this or any euphorbia. Consider wearing safety glasses to protect your eyes from accidental contact. Keep the latex out of your eyes and keep all plant material away from children or pets.
Select a new container that is one-third to one-half (but no larger) the size of the previous container. Pre-clean the container although it’s unnecessary to pre-soak the pot, a common practice when preparing new pots for plants.
Wait until the weather is warm before transplanting your euphorbia. If the pencil cactus is kept indoors under air conditioning during the summer, place it outside in the warmer air for a few days before transplanting and during the re-establishment period. Keep it away from rain and sprinklers and allow time for the soil to dry before repotting; be aware that cold weather and moist soils encourage root and plant rot.
Prepare a light, well-draining, airy, gritty soil mix or buy a cactus mix. Add one-part sand or perlite to three-parts commercial mix for this root-rot susceptible euphorbia, or make a customized mix. Combine an equal-parts blend of commercial soil-based organic potting mixture with coarse horticultural-grade sand and perlite or horticultural pumice.
Lift the pencil cactus out of the container by gently grabbing the plant’s trunk at the base close to the soil level and lift. If the container is a throw-away pot break it (and re-use the broken crock) or cut it away from the soil. Knock the soil away from the roots and prune off any obviously damaged or rotten roots.
Roots damaged during transplanting might weep some white latex -- run cold water over these broken roots to help stop the flow. Wait until the roots dry before placing the plant in the soil.
Spread a layer of broken crock or small rocks on the base of the pot before adding soil without covering the drain hole. Scoop a layer of dry soil into the lower third of the new pot and fan the plant’s roots out before filling the pot with new soil. Position the plant and fill only to the trunk's obvious soil line and not above it.
Support top-heavy, larger plants by placing a cone-shaped tomato cage around them during the establishment period. Place this temporary cage around the plant with the stakes in the soil or if the cage fits around the pot, set the cage upside down on the floor. Top dress the soil with a thin layer of horticultural-quality pea gravel.
Position the plant in bright, filtered light for two weeks and leave the soil dry; after two weeks return to a full-sun location and resume normal watering. Do not overwater, especially while the roots are becoming stabilized. New growth on the plant indicates that the plant has become established.