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You don't need special coned yarn to knit with a knitting machine. Many knitters use yarn on cones so they don't have to work in as many yarn ends as you do with balled or skeined yarn.

Machine knitters can knit almost anything a hand knitter can knit, only faster! Stripes, tuck (knit in the row below), slip, multi-color texture stitches, stranded multi color work, lace. You name it!
Category: Introduction to Machine Knitting
What you need to know
Format: Video
Author: Knit It Now
Skill Level: All Knitters
Knitting Method: All Knitting
Part of a Series: Yarn for Machine Knitting