This workhorse yarn is great for your dishcloths, towels, and rugs! Withstands the wear and tear of getting wet, drying, scrubbing, and repeating!
Check out the variegated colors in Nifty Cotton Splash here!
We found this great bag on Ravelry - the Grrlfriend Market Bag. It's a free pattern. This cotton would be great for it! Two skeins will get you a bag.