Within the past few weeks Knit Picks released a new yarn line— City Tweed. This blend of 55% merino, 25% superfine alpaca, & 20% donegal tweed is super soft with some mild fuzziness that is characteristic of alpaca. City Tweed is available is two [of my favorite] weights, DK ($3.99/123yd. ball) and heavy worsted ($7.99/164yd. ball).
Currently I am knitting up a new design using the DK version in "Splash," a beautiful green/blue color reminiscent of the ocean depths. So far I have no complaints with the yarn. It's smooth on my hands and knitting up into a structured fabric that still possesses a nice drape. (For reference: my gauge is 5.5 sts per inch on US size 3(3.25mm) & 5 sts per inch on US size 5(3.75mm) needles.) Unlike other Knit Picks yarns, the City Tweed is not "flat," but has a good deal of depth to the colors it's available in.
I'm curious how the yarn will wash and wear. As long as it holds up well in this area I think Knit Picks may have hit upon a winner.