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Palacios was optioned to Triple-A Indianapolis on Thursday, Kevin Gorman of TribLive.com reports.
Palacios began spring training with the potential to serve in a large-side platoon role in right field. However, the addition of Michael Taylor crowded the outfield in Pittsburgh, making Palacios more expendable. He'll likely be the top option for a promotion should an injury occur in the Pirates' outfield.
