Bolts of Cloth

Bolt of Cloth is a low-tier crafting material that can be made into cloth armor and other items using the Fabrication skill using a Loom. Players may also equip a Hunting Knife and cut cloth into Bandages.

Source
Cloth is made by using Cotton. It requires no skill and you must use a Loom.

1 Cotton will turn into 5 Bolts of Cloth.