Lanolin is "wool fat" or grease, chemically akin to wax, it is produced by wool-bearing animals such as sheep. It helps them to shed water from their coats. Certain breeds of sheep produce large amounts of lanolin and the extraction can be performed by squeezing the wool between rollers.Lanolin is used commercially in a great many products ranging from rust preventitive coatings to cosmetics. Most or all the lanolin is removed from wool when it is processed into textiles e.g. yarn or felt.