They can be used as crafting materials, blankets, and in trading.
There are five qualities (from best to worst) for fur:
- decent (it just reads "fur" instead of "fine/etc. fur")
The values of furs for trading has no correlation with the usefulness of furs for player crafting. Fox fur is extremely valuable for traders in contrast to bear fur, which is warmest of all furs.
Example: In v3.14 an inferior bear fur (21 lb) is less valuable than a normal fox fur (<1 lb) to foreign traders.
Bear fur provides the best protection against piercing damage, making it the best material for clothing to wear when you fight NPCs.
These animals provide fur: