Melamine (the particle board substrate) is actually quite toxic. It has formaldehyde and urea glues used in MDF and particle boards. Most plywood is glued with similar phenolic resin glues that once catyalized have less out gassing also the glue joint is very small only the very slight edge where particle board the joint is the full exposed width.
The shop I used to work in particle board and MDF required a use of a respirator to work with it.
I would expect plywood to be far less toxic than particle boards especially looking at the MSDS sheets for various products. Any bare wood needs to be sealed in any case. I would not use cedar ply but the fir (douglas or spruce usually) is fine and pine is fine if it is kiln dried (all ply is) but if asked I would really use either plastic or birch ply it is 1000 times easier to work with (flatter and less voids fill spots ect...) and seriously stronger.
melamine is used usually because it is cheap.