I use cotton worsted weight yarn for these, but any type yarn should work. 16 stitches are fine for regular straight pins, but most quilters use 2.5" long pins, and the 20 stitches work much better with those.
The small pincushion in the back was knitted with just whatever leftover yarn I grabbed. Sometimes, I only 2 or 3 rows from a length, but it's a good way to use up the yarn. A quilter or seamstress can always use aother pincushion!