Bamboo, Tencel, Merino Wool, Alpaca, and Silk are my yarns of choice for shawls, ponchos, and scarves. 
For hand towels, my favorite yarns are unmercerized cotton (for its strength and absorbency) and cottolin.
Here is a sampling of shawls and towels plus photos from the back of the loom with a warp wound on and of the initial planning on my pattern designing program.  

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