This bag was made from superbulky yarn, spun from half a small Blue Texel fleece I bought at the local agricultural show. One end was dipped in an Indigo Leaf vat, as the sheep is actually shades of grey, no blue :) This blog is about the spinning.
Linen stitch showed the variegated colours nicely, it knits up thick, flat and inelastic, which works well for a bag, I think. Details of my basic pattern are on this blog.