The term MERINO refers to a breed of SHEEP that is widely farmed for its WOOL. The Merino SHEEP produces a high-quality, soft WOOL that is used in many clothing items. The WOOL is also used in the production of carpets and blankets. The Merino SHEEP is one of the oldest and most popular breeds of SHEEP, and it is known for its ability to adapt to different climates. The word MERINO can be broken down into two words: SHEEP (5 letters) and WOOL (4 letters).