Wool wax is oil/grease (lanolin). Same as any animal oils, or fats. All flammable. Same as wool and cotton. Both flammable.
I think a woven wool (blanket) would be very much different than a wad of wool (hair). Wash out the wool wax and you just have hair.
Tow is plant fiber with most of the other organic matter stripped away. It is not hair, but also it's flammable.
Then we grease up our cotton/linen cloth patches with animal fats/oils all of which is flammable. But we well know it works.
The flame resistance of wool fabric is actually pretty good, far better than cotton according to the mattress maker/seller below.
I wouldn't even try loose wool over a bare-ball load with proper undersized ball. Nope, that's a furnace in front of that ball, and though the wool might outrun the flame by some miracle of internal ballistics with un-sealed projectiles, I highly doubt it and simply do not want to smell the remnants.
Test and and see, for any loadings different than a bare-ball load as I described, are now my thoughts. Good luck.
This is from the perspective of a manufacturing/sales of mattresses outfit, but talks about fire and cotton and wool a good bit:
http://strobel.com/wool_burns.htmBut also wool is hard to light:
https://www.learnaboutwool.com/lesson-plans/the-properties-of-wool/does-wool-burn/