Where'd all the sheep in the world go? I walked the entire world and I didn't see one sheep or any cotton growing in the fields. The only thing growing in the fields were hay, carrot and turnip.
I think there was some issue with the spawn and they are being fixed today. Join irc (link at top right of this webpage) and I can get you some free cloth if you need it.
Thanks Snap. Yes there was a small issue that was patched. Sheep can now be found in all their normal locations around the world.
