Characteristics
Overview
A bundle of wool. Might be able to take this to a stable to sell.
Nothing on the site takes wool as an ingredient, and you cannot make it either: the game files give nobody a blueprint for it, whatever recipe the row shows, so every bundle comes from loot or a trade. The game's own text says you might be able to sell it at a stable. That is the whole story the data tells.
So treat it as a trade good. If wool lands in your inventory, take it to a stable and see what the vendor offers before you do anything else with it.
Tip
No stable nearby, or the offer is bad? A recycler turns each bundle into two or three cloth with a chance at one more, and cloth goes into sewing kits, bandages and half of your clothes.
It sits with the other resources, but it is a minor one. Do not plan a trip around it.
Recycling
At power grid stage 2 a green recycler works at 60% instead of 50%. Yields depend on the recycler.