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Well, I'm not an expert by any means, but I recently bought some Knit Picks' Dancing to try. It's a blend of 41% cotton, 39% wool, 13 % Nylon, and 7% elastic. It seems very nice, stretchy, and soft.
I'm not sure if you could knit socks with 100% cotton -- again, I'm not an expert, but it seems like without something to give it a little stretch, the socks would fall down.
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