Cloth is an item in Survival Beginnings.
Cloth is a somewhat useful item, required to create sails, found in any boat better than a raft. It is also needed for the upgraded version of the crude torch, and 2nd best fire starter, the cloth torch. It uses 3 cotton in it's creation, and crafting a sail, needs 2 cloth pieces. Obviously if you do the math you can get 9 cotton balls, then 3 cotton.
Unless you have a building called the gin. Putting cotton bolls into it makes cotton.