Yarn question

[mercy-mile.livejournal.com]

I looked in the memories and really couldn't find anything on this. Tomarrow I'm probably going to Hobby Lobby to spend the gift card my mom got me for my birthday. I want to get some yarn so I can make some baby hats and a blanket for my little one who's going to be here in Nov. I was just wondering what type of yarn would be good for a baby blanket and hats because all of the yarn i have doesn't seem to be soft enough for this. Also, I will be making these on my set of knifty knitter looms if that helps.