Your quality wasn't high enough, obviously. When grinding out HQ cotton yarn, I've rarely achieved anything higher than NQ with less than 200 quality. Again, it can happen, but not as often. My suggestion:

1) use +3 mats when possible. if +3 is too expensive or unavailable, use +2. Going back to grinding cotton yarn, if I want HQ, I never use NQ or +1 cotton bolls.

2) Adjust your stats a bit more to complement which tool you are using. You are using vit rings, so I'm assuming that you are using your main hand. Increase your Vit stat. If it's already pretty high (around or between 100-120), go back to step 1