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Cord is a form of tying equipment made from 0.5 lbs of cloth using a cutting weapon. It's in the make menu (Shift + m) under utility articles (U). It may be used in any item that requires tying equipment, such as smoked or dried meat, skis, or traps. It is also used for making arrows.

The only thing it cannot be used for is to tie up animals which you need a rope for.