When you have a slubby yarn like this, the best way to show of the yarn is a simple stokinette. I tries to garter and to rib but that only resulted in a bit of pooling mess.
This lot of Catalina is destined to be a scarf but add another 2 hanks and I could make a nice mesh tank to wear over t shirts or a bathing suit.
I was thinking of making this lacy poncho from Knitting pure and simple from the Novelty boutone
This is the only poncho I have seen that I like. Now if I can locate the pattern online, I'd be soooo happy.