Loom

Turns raw wool into fine cloth.
Overview
The Loom is a type of Artisan Equipment used to make Artisan Goods. It takes 

Placing quality Wool into a Loom gives a chance to produce 2 Cloth instead of 1. Silver-quality Wool gives a 10% chance, gold-quality Wool gives a 50% chance, and iridium-quality Wool gives a 100% chance. Because of this, higher-quality Wool is especially valuable when processing it in bulk, since iridium-quality Wool always yields double Cloth. Cloth is the Loom’s only product.
In practice, the Loom is most useful once a player has a steady supply of Wool from Sheep or Rabbits. Since Cloth is a valuable crafting and bundle resource, the machine is especially helpful for turning animal products into a more useful and portable processed good. The quality bonus also makes the Loom unusual among artisan machines: if the player can consistently obtain better Wool, it is worth processing rather than selling raw.
- Wool is the only input item the Loom accepts.
- Regular Wool produces 1 Cloth.
- Silver-quality Wool has a 10% chance to produce 2 Cloth.
- Gold-quality Wool has a 50% chance to produce 2 Cloth.
- Iridium-quality Wool always produces 2 Cloth.
- Cloth is the Loom’s only output.
Because the machine only processes one item at a time, using it efficiently usually means keeping it near a source of Wool so it can be refilled regularly. Players who raise Sheep or Rabbits may find the Loom particularly convenient, since it directly converts their animal output into Cloth without additional ingredients or steps.
Official description
Turns raw wool into fine cloth.