I'm still playing with the pattern, but I'm really liking this version.
Knitted Market Bag
1 skein cotton yarn (Lion Brand or Sugar and Cream, or whatever you want)
Size 13 circular needles (16"-20" long)
large sewing needle for weaving in ends
Finished size is ~10" x 10" unstretched. It holds a surprising amount when filled. You can make it larger by using larger needles, adding more stitches to the circumference or increasing the # of row repeats. It's very versatile.
Cast on 15 stitches and knit garter stitch for 32 rows. Once you finish the bottom of the bag you will work the body of the bag in the round. Pick up 15 stitches on each of the 3 sides and knit across the 15 stitches on the needle, place a marker to mark the beginning of the row. Work in the round in garter stitch for 4 rows ending on a purl row. Then work the following pattern for 6 repeats.
Row 1: [Knit 2 together, yarn over] repeat to the end of the row
Row 2 and 4: Knit
Row 3: [yarn over, Knit 2 together] repeat to the end of the row
Once these 4 rows have been completed 6 times knit 4 rows of garter stitch ending on a purl row.
Make two handles as follows:
Knit 2 stitches, bind off 10 stitches, knit 20 stitches, bind off 10 stitches, knit to the end of the row. Knit 2 stitches, turn work and cast on 13 stitches using the cable cast on technique, turn work, knit 20 stitches, turn work and cast on 13 stitches using the cable cast on technique, turn work and knit to the end of the row. Knit one row. Bind off loosely.
The single handle is fine, but hard to shoove in large items because the top narrows. The two handles make adding new purchases more convienent.