Speckled Hat is a great introductory pattern for learning to knit in the round with 2 colours. 
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YARN: 8 ply/DK/light, 50gm balls of merino wool.
In this pattern I have used Debbie Bliss Rialto DK mustard & white. Other yarns you can use are Broadway Merino DK or Bellisimo DK super fine merino wool. Length of yarn is usually between 103 - 125 metres/112 - 137 yards per ball. Any wool of the same guage will be fine.
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GUAGE: 22 stitches and 30 rows = 10cm/4 inches
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COLOURS: 2
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SIZE: To fit a medium - large adults head 59cm - 61cm (23 - 24 inches).
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SKILLS: Knit & purl stitches, knitting in the round, decreasing, catching floats, weaving.