sendgrid cpanel exim failure

Question

I was following instructions at the below websites

http://sendgrid.com/docs/Integrate/Mail_Servers/exim.html

http://knowledgelayer.softlayer.com/procedure/e-mail-delivery-service-server-side-configuration-centos-cpanel-exim

It seems to be configured correctly, but when I try to send an email via a php script I get the following error:

2013-03-23 17:09:48 cwd=/home/chrism/public_html 3 args: /usr/sbin/sendmail -t -i
2013-03-23 17:09:48 1UJVhE-0008SI-VG <= [email protected] U=chrism P=local S=389 T="Test" for [email protected]
2013-03-23 17:09:48 cwd=/var/spool/exim 3 args: /usr/sbin/exim -Mc 1UJVhE-0008SI-VG
2013-03-23 17:09:49 1UJVhE-0008SI-VG remote host address is the local host: yahoo.com
2013-03-23 17:09:49 1UJVhE-0008SI-VG == [email protected] R=send_via_sendgrid defer (-1): remote host address is the local host
2013-03-23 17:09:49 1UJVhE-0008SI-VG Frozen

I am trying to send to a @yahoo.com address but it fails for some reason.

dig yahoo.com

root@host [~]# dig -t mx yahoo.com

; <<>> DiG 9.3.6-P1-RedHat-9.3.6-20.P1.el5_8.6 <<>> -t mx yahoo.com
;; global options:  printcmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 50122
;; flags: qr rd ra; QUERY: 1, ANSWER: 3, AUTHORITY: 7, ADDITIONAL: 7

;; QUESTION SECTION:
;yahoo.com.         IN  MX

;; ANSWER SECTION:
yahoo.com.      576 IN  MX  1 mta5.am0.yahoodns.net.
yahoo.com.      576 IN  MX  1 mta6.am0.yahoodns.net.
yahoo.com.      576 IN  MX  1 mta7.am0.yahoodns.net.

;; AUTHORITY SECTION:
yahoo.com.      147199  IN  NS  ns4.yahoo.com.
yahoo.com.      147199  IN  NS  ns5.yahoo.com.
yahoo.com.      147199  IN  NS  ns6.yahoo.com.
yahoo.com.      147199  IN  NS  ns8.yahoo.com.
yahoo.com.      147199  IN  NS  ns1.yahoo.com.
yahoo.com.      147199  IN  NS  ns2.yahoo.com.
yahoo.com.      147199  IN  NS  ns3.yahoo.com.

;; ADDITIONAL SECTION:
ns1.yahoo.com.      8562    IN  A   68.180.131.16
ns2.yahoo.com.      8562    IN  A   68.142.255.16
ns3.yahoo.com.      147199  IN  A   98.138.222.11
ns4.yahoo.com.      8562    IN  A   68.142.196.63
ns5.yahoo.com.      8562    IN  A   119.160.247.124
ns6.yahoo.com.      8562    IN  A   202.43.223.170
ns8.yahoo.com.      8562    IN  A   202.165.104.22

;; Query time: 31 msec
;; SERVER: 127.0.0.1#53(127.0.0.1)
;; WHEN: Sun Mar 24 13:48:02 2013
;; MSG SIZE  rcvd: 344

exim command:

root@host [~]# exim -d -bt [email protected]
Exim version 4.80 uid=0 gid=0 pid=13408 D=fbb95cfd
Berkeley DB: Sleepycat Software: Berkeley DB 4.3.29: (July 12, 2010)
Support for: crypteq iconv() IPv6 PAM Perl OpenSSL Content_Scanning DKIM Old_Demime Experimental_SPF Experimental_SRS
Lookups (built-in): lsearch wildlsearch nwildlsearch iplsearch dbm dbmjz dbmnz passwd
Authenticators: cram_md5 dovecot plaintext spa
Routers: accept dnslookup ipliteral manualroute queryprogram redirect
Transports: appendfile/maildir autoreply pipe smtp
Size of off_t: 8
Compiler: GCC [4.1.2 20080704 (Red Hat 4.1.2-52)]
Library version: OpenSSL: Compile: OpenSSL 0.9.8e-fips-rhel5 01 Jul 2008
                          Runtime: OpenSSL 0.9.8e-fips-rhel5 01 Jul 2008
Library version: PCRE: Compile: 8.12
                       Runtime: 8.12 2011-01-15
Total 9 lookups
WHITELIST_D_MACROS unset
TRUSTED_CONFIG_LIST: "/etc/exim_trusted_configs"
changed uid/gid: forcing real = effective
  uid=0 gid=0 pid=13408
  auxiliary group list: <none>
seeking password data for user "cpaneleximfilter": cache not available
getpwnam() succeeded uid=508 gid=505
seeking password data for user "root": cache not available
getpwnam() succeeded uid=0 gid=0
changed uid/gid: calling tls_validate_require_cipher
  uid=47 gid=12 pid=13409
  auxiliary group list: <none>
tls_require_ciphers expands to "ALL:!ADH:RC4+RSA:+HIGH:+MEDIUM:-LOW:-SSLv2:-EXP"
tls_validate_require_cipher child 13409 ended: status=0x0
configuration file is /etc/exim.conf
log selectors = 00001dfc 00293043
trusted user
admin user
seeking password data for user "mailnull": cache not available
getpwnam() succeeded uid=47 gid=47
originator: uid=0 gid=0 login=root name=root
sender address = [email protected]
Address testing: uid=0 gid=12 euid=0 egid=12
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Testing [email protected]
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Considering [email protected]
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
routing [email protected]
--------> send_via_sendgrid router <--------
local_part=blasto333 domain=yahoo.com
checking domains
search_open: lsearch "/etc/localdomains"
search_find: file="/etc/localdomains"
  key="yahoo.com" partial=-1 affix=NULL starflags=0
LRU list:
  4/etc/localdomains
  End
internal_search_find: file="/etc/localdomains"
  type=lsearch key="yahoo.com"
file lookup required for yahoo.com
  in /etc/localdomains
lookup failed
yahoo.com in "lsearch;/etc/localdomains"? no (end of list)
yahoo.com in "! +local_domains"? yes (end of list)
calling send_via_sendgrid router
send_via_sendgrid router called for [email protected]
  domain = yahoo.com
route_item = * smtp.sendgrid.net::587 byname
yahoo.com in "*"? yes (matched "*")
original list of hosts = "smtp.sendgrid.net::587" options = byname
expanded list of hosts = "smtp.sendgrid.net::587" options = byname
set transport sendgrid_smtp
finding IP address for smtp.sendgrid.net:587
host=smtp.sendgrid.net port=587
calling host_find_byname
gethostbyname2(af=inet6) returned 4 (NO_DATA)
local host found for non-MX address
fully qualified name = host.blastohosting.com
gethostbyname2 looked up these IP addresses:
  name=host.blastohosting.com address=67.222.16.43
LOG: MAIN
  remote host address is the local host: yahoo.com (while routing <[email protected]>)
send_via_sendgrid router: defer for [email protected]
  message: remote host address is the local host
[email protected] cannot be resolved at this time: remote host address is the local host
search_tidyup called
>>>>>>>>>>>>>>>> Exim pid=13408 terminating with rc=1 >>>>>>>>>>>>>>>>

exim command with default settings:

root@host [~]# exim -d -bt [email protected]
Exim version 4.80 uid=0 gid=0 pid=13681 D=fbb95cfd
Berkeley DB: Sleepycat Software: Berkeley DB 4.3.29: (July 12, 2010)
Support for: crypteq iconv() IPv6 PAM Perl OpenSSL Content_Scanning DKIM Old_Demime Experimental_SPF Experimental_SRS
Lookups (built-in): lsearch wildlsearch nwildlsearch iplsearch dbm dbmjz dbmnz passwd
Authenticators: cram_md5 dovecot plaintext spa
Routers: accept dnslookup ipliteral manualroute queryprogram redirect
Transports: appendfile/maildir autoreply pipe smtp
Size of off_t: 8
Compiler: GCC [4.1.2 20080704 (Red Hat 4.1.2-52)]
Library version: OpenSSL: Compile: OpenSSL 0.9.8e-fips-rhel5 01 Jul 2008
                          Runtime: OpenSSL 0.9.8e-fips-rhel5 01 Jul 2008
Library version: PCRE: Compile: 8.12
                       Runtime: 8.12 2011-01-15
Total 9 lookups
WHITELIST_D_MACROS unset
TRUSTED_CONFIG_LIST: "/etc/exim_trusted_configs"
changed uid/gid: forcing real = effective
  uid=0 gid=0 pid=13681
  auxiliary group list: <none>
seeking password data for user "cpaneleximfilter": cache not available
getpwnam() succeeded uid=508 gid=505
seeking password data for user "root": cache not available
getpwnam() succeeded uid=0 gid=0
changed uid/gid: calling tls_validate_require_cipher
  uid=47 gid=12 pid=13682
  auxiliary group list: <none>
tls_require_ciphers expands to "ALL:!ADH:RC4+RSA:+HIGH:+MEDIUM:-LOW:-SSLv2:-EXP"
tls_validate_require_cipher child 13682 ended: status=0x0
configuration file is /etc/exim.conf
log selectors = 00001dfc 00293043
trusted user
admin user
seeking password data for user "mailnull": cache not available
getpwnam() succeeded uid=47 gid=47
originator: uid=0 gid=0 login=root name=root
sender address = [email protected]
Address testing: uid=0 gid=12 euid=0 egid=12
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Testing [email protected]
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Considering [email protected]
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
routing [email protected]
--------> democheck router <--------
local_part=blasto333 domain=yahoo.com
checking require_files
file check: +/etc/demouids
expanded file: /etc/demouids
stat() yielded 0
checking "condition"
search_open: lsearch "/etc/demouids"
search_find: file="/etc/demouids"
  key="0" partial=-1 affix=NULL starflags=0
LRU list:
  4/etc/demouids
  End
internal_search_find: file="/etc/demouids"
  type=lsearch key="0"
file lookup required for 0
  in /etc/demouids
lookup failed
democheck router skipped: condition failure
--------> check_mail_permissions router <--------
local_part=blasto333 domain=yahoo.com
checking domains
search_open: lsearch "/etc/localdomains"
search_find: file="/etc/localdomains"
  key="yahoo.com" partial=-1 affix=NULL starflags=0
LRU list:
  4/etc/localdomains
  4/etc/demouids
  End
internal_search_find: file="/etc/localdomains"
  type=lsearch key="yahoo.com"
file lookup required for yahoo.com
  in /etc/localdomains
lookup failed
yahoo.com in "lsearch;/etc/localdomains"? no (end of list)
yahoo.com in "! +local_domains"? yes (end of list)
checking "condition"
Starting Perl interpreter
search_open: passwd "NULL"
search_find: file="NULL"
  key="nobody" partial=-1 affix=NULL starflags=0
LRU list:
  4/etc/localdomains
  4/etc/demouids
  End
internal_search_find: file="NULL"
  type=passwd key="nobody"
database lookup required for nobody
seeking password data for user "nobody": cache not available
getpwnam() succeeded uid=99 gid=99
lookup yielded: *:99:99:Nobody:/:/sbin/nologin
search_open: lsearch "/etc/domainusers"
search_find: file="/etc/domainusers"
  key="root" partial=-1 affix=NULL starflags=0
LRU list:
  4/etc/domainusers
  4/etc/localdomains
  4/etc/demouids
  End
internal_search_find: file="/etc/domainusers"
  type=lsearch key="root"
file lookup required for root
  in /etc/domainusers
lookup failed
search_open: lsearch "/etc/userdomains"
search_find: file="/etc/userdomains"
  key="" partial=-1 affix=NULL starflags=0
LRU list:
  4/etc/userdomains
  4/etc/domainusers
  4/etc/localdomains
  4/etc/demouids
  End
internal_search_find: file="/etc/userdomains"
  type=lsearch key=""
search_open: lsearch "/etc/userdomains"
  cached open
search_find: file="/etc/userdomains"
  key="host.blastohosting.com" partial=-1 affix=NULL starflags=0
LRU list:
  4/etc/userdomains
  4/etc/domainusers
  4/etc/localdomains
  4/etc/demouids
  End
internal_search_find: file="/etc/userdomains"
  type=lsearch key="host.blastohosting.com"
file lookup required for host.blastohosting.com
  in /etc/userdomains
lookup failed
check_mail_permissions router skipped: condition failure
--------> enforce_mail_permissions router <--------
local_part=blasto333 domain=yahoo.com
checking domains
cached no match for +local_domains
cached lookup data = NULL
yahoo.com in "! +local_domains"? yes (end of list)
checking "condition"
enforce_mail_permissions router skipped: condition failure
--------> increment_max_emails_per_hour_if_needed router <--------
local_part=blasto333 domain=yahoo.com
checking domains
cached no match for +local_domains
cached lookup data = NULL
yahoo.com in "! +local_domains"? yes (end of list)
checking "condition"
increment_max_emails_per_hour_if_needed router skipped: condition failure
--------> dkim_lookuphost router <--------
local_part=blasto333 domain=yahoo.com
checking domains
cached no match for +local_domains
cached lookup data = NULL
yahoo.com in "! +local_domains"? yes (end of list)
checking require_files
file check: +/var/cpanel/domain_keys/private/${sender_address_domain}
expanded file: /var/cpanel/domain_keys/private/host.blastohosting.com
stat() yielded -1
errno = 2
dkim_lookuphost router skipped: file check
--------> lookuphost router <--------
local_part=blasto333 domain=yahoo.com
checking domains
cached no match for +local_domains
cached lookup data = NULL
yahoo.com in "! +local_domains"? yes (end of list)
calling lookuphost router
lookuphost router called for [email protected]
  domain = yahoo.com
DNS lookup of yahoo.com (MX) succeeded
DNS lookup of mta5.am0.yahoodns.net (AAAA) gave NO_DATA
returning DNS_NODATA
DNS lookup of mta5.am0.yahoodns.net (A) succeeded
66.196.118.34 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.34 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.36 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.36 in "+loopback : 64.94.110.0/24"? no (end of list)
67.195.168.230 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
67.195.168.230 in "+loopback : 64.94.110.0/24"? no (end of list)
74.6.136.244 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
74.6.136.244 in "+loopback : 64.94.110.0/24"? no (end of list)
98.136.216.25 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.136.216.25 in "+loopback : 64.94.110.0/24"? no (end of list)
98.136.217.202 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.136.217.202 in "+loopback : 64.94.110.0/24"? no (end of list)
98.138.112.37 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.138.112.37 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.33 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.33 in "+loopback : 64.94.110.0/24"? no (end of list)
DNS lookup of mta6.am0.yahoodns.net (AAAA) gave NO_DATA
returning DNS_NODATA
DNS lookup of mta6.am0.yahoodns.net (A) succeeded
98.139.54.60 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.139.54.60 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.34 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.34 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.35 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.35 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.36 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.36 in "+loopback : 64.94.110.0/24"? no (end of list)
67.195.168.230 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
67.195.168.230 in "+loopback : 64.94.110.0/24"? no (end of list)
98.136.217.202 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.136.217.202 in "+loopback : 64.94.110.0/24"? no (end of list)
98.138.112.33 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.138.112.33 in "+loopback : 64.94.110.0/24"? no (end of list)
98.138.112.37 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.138.112.37 in "+loopback : 64.94.110.0/24"? no (end of list)
DNS lookup of mta7.am0.yahoodns.net (AAAA) gave NO_DATA
returning DNS_NODATA
DNS lookup of mta7.am0.yahoodns.net (A) succeeded
98.138.112.33 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.138.112.33 in "+loopback : 64.94.110.0/24"? no (end of list)
98.138.112.34 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.138.112.34 in "+loopback : 64.94.110.0/24"? no (end of list)
98.138.112.38 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
98.138.112.38 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.33 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.33 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.34 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.34 in "+loopback : 64.94.110.0/24"? no (end of list)
66.196.118.36 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
66.196.118.36 in "+loopback : 64.94.110.0/24"? no (end of list)
67.195.168.230 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
67.195.168.230 in "+loopback : 64.94.110.0/24"? no (end of list)
74.6.136.244 in "<; 127.0.0.0/8 ; 0.0.0.0 ; ::1 ; 0000:0000:0000:0000:0000:ffff:7f00:0000/8"? no (end of list)
74.6.136.244 in "+loopback : 64.94.110.0/24"? no (end of list)
duplicate IP address 66.196.118.33 (MX=1) removed
duplicate IP address 66.196.118.34 (MX=1) removed
duplicate IP address 66.196.118.34 (MX=1) removed
duplicate IP address 74.6.136.244 (MX=1) removed
duplicate IP address 98.138.112.37 (MX=1) removed
duplicate IP address 66.196.118.36 (MX=1) removed
duplicate IP address 66.196.118.36 (MX=1) removed
duplicate IP address 67.195.168.230 (MX=1) removed
duplicate IP address 67.195.168.230 (MX=1) removed
duplicate IP address 98.136.217.202 (MX=1) removed
duplicate IP address 98.138.112.33 (MX=1) removed
fully qualified name = yahoo.com
host_find_bydns yield = HOST_FOUND (2); returned hosts:
  mta5.am0.yahoodns.net 66.196.118.33 MX=1 
  mta5.am0.yahoodns.net 66.196.118.34 MX=1 
  mta5.am0.yahoodns.net 74.6.136.244 MX=1 
  mta5.am0.yahoodns.net 98.136.216.25 MX=1 
  mta5.am0.yahoodns.net 98.138.112.37 MX=1 
  mta5.am0.yahoodns.net 66.196.118.36 MX=1 
  mta5.am0.yahoodns.net 67.195.168.230 MX=1 
  mta5.am0.yahoodns.net 98.136.217.202 MX=1 
  mta6.am0.yahoodns.net 66.196.118.35 MX=1 
  mta6.am0.yahoodns.net 98.139.54.60 MX=1 
  mta6.am0.yahoodns.net 98.138.112.33 MX=1 
  mta7.am0.yahoodns.net 98.138.112.38 MX=1 
  mta7.am0.yahoodns.net 98.138.112.34 MX=1 
set transport remote_smtp
queued for remote_smtp transport: local_part = blasto333
domain = yahoo.com
  errors_to=NULL
  domain_data=NULL localpart_data=NULL
routed by lookuphost router
  envelope to: [email protected]
  transport: remote_smtp
  host mta5.am0.yahoodns.net [66.196.118.33] MX=1
  host mta5.am0.yahoodns.net [66.196.118.34] MX=1
  host mta5.am0.yahoodns.net [74.6.136.244] MX=1
  host mta5.am0.yahoodns.net [98.136.216.25] MX=1
  host mta5.am0.yahoodns.net [98.138.112.37] MX=1
  host mta5.am0.yahoodns.net [66.196.118.36] MX=1
  host mta5.am0.yahoodns.net [67.195.168.230] MX=1
  host mta5.am0.yahoodns.net [98.136.217.202] MX=1
  host mta6.am0.yahoodns.net [66.196.118.35] MX=1
  host mta6.am0.yahoodns.net [98.139.54.60] MX=1
  host mta6.am0.yahoodns.net [98.138.112.33] MX=1
  host mta7.am0.yahoodns.net [98.138.112.38] MX=1
  host mta7.am0.yahoodns.net [98.138.112.34] MX=1
[email protected]
  router = lookuphost, transport = remote_smtp
  host mta5.am0.yahoodns.net [66.196.118.33]  MX=1
  host mta5.am0.yahoodns.net [66.196.118.34]  MX=1
  host mta5.am0.yahoodns.net [74.6.136.244]   MX=1
  host mta5.am0.yahoodns.net [98.136.216.25]  MX=1
  host mta5.am0.yahoodns.net [98.138.112.37]  MX=1
  host mta5.am0.yahoodns.net [66.196.118.36]  MX=1
  host mta5.am0.yahoodns.net [67.195.168.230] MX=1
  host mta5.am0.yahoodns.net [98.136.217.202] MX=1
  host mta6.am0.yahoodns.net [66.196.118.35]  MX=1
  host mta6.am0.yahoodns.net [98.139.54.60]   MX=1
  host mta6.am0.yahoodns.net [98.138.112.33]  MX=1
  host mta7.am0.yahoodns.net [98.138.112.38]  MX=1
  host mta7.am0.yahoodns.net [98.138.112.34]  MX=1
search_tidyup called
>>>>>>>>>>>>>>>> Exim pid=13681 terminating with rc=0 >>>>>>>>>>>>>>>>

Answer 1

Check your cPanel email settings - I think it is in Mail >> MX entry section - is "Local mail exchanger" enabled? In that case, I believe, sendmail tries to deliver the email locally but since your server is not yahoo.com, it obviously fails. Unless you have some special requirements, you should probably set it to "Remote mail exchanger".

By the way, if you're using Sendgrid for email and you're sending large volumes of email, I'd suggest using their HTTP API - SMTP is a very verbose protocol and I've had considerable speed improvements when I switched from SMTP to HTTP.