It somewhat depends on your soil pH, the iron sulfate doesn't work very well in higher pH soils. The iron chelate works in both.
You missed the part where the iron sulfate gets chelated into the wood chips. It forms iron chelates before it hits the soil and roots.
What are common iron chelates and other metallic chelates used in agriculture? >>>>>>>
http://www.southernag.com/docs/labels_msds/chcitr.pdfDerived from: Magnesium Sulfate, Magnesium Lignin Sulfate Chelate, Manganese Sulfate, Manganese Lignin Sulfate
Chelate, Zinc Sulfate, Zinc Lignin Sulfate Chelate, Ferrous Sulfate, Ferrous Lignin Sulfate Chelate. Chelating agent is Lignin Sulfate
Notice all the lignin chelates above.
Lignins=wood ///to put it in simple terms///Lignins are found in wood///can be extracted from wood to use in various purposes
http://en.wikipedia.org/wiki/Lignin