Personally, I'm wary of trying mercerized yarn, as it seems that it's treated with
lye to alter it's structure. I would suppose that it would be neutralized or eliminated in the process, but I hated chemistry, and really don't know...
I've given up on yarn altogether, as I've found that good, pure cotton balls work phenomenally, with some practice.
I've tried a couple of 100% cotton yarns (no dye,) including the popular one earlier in the thread, and they irritate my airways even after several boilings.
I subscribe to the opinion that there is sizing or some other substance there causing my adverse reaction to it, since cotton balls do not bother me so.
I have not tried bamboo yarn yet, though I do look forward to trying it sometime. I'm quite partial to the cotton balls, though, and I think that the $2 bag that I bought will last years.