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Cool Best Yarn For Tufting References . When speaking of tufting supplies, backing cloth is another essential item you’ll need and, like yarn, has some variance. The wool is on cones allowing you to feed your yarn consistently for the best tufting. Rug Tufting Yarn 1lb cone 100 Wool Yarn for Weaving Brown Etsy from www.etsy.com The wool is on cones allowing you to feed your yarn consistently for the best tufting. Most carpets are made with natural wool yarn or a synthetic blend. What yarn is best for rugs?