Instructions
Purchase a yarn maker from the General Store and receive the dying pot necessary to dye the wool for free. The yarn maker will come in handy if you need to produce your own yarn.
Obtain red herbs by growing them or collecting them from around the town. You can also use any red flower, such as roses or hibiscus.
Purchase wool at the Spring Flea Market or the Animal Festival. You can also raise your own sheep to adulthood. This process takes 14 days, and the grown sheep will produce new wool every four days.
Drop the sheep's wool into the yarn maker to produce wool yarn.
Combine the red herbs or flower with the wool yarn in the dying pot to produce red wool yarn.