Abstract: The terry loop forming instruments are positioned in vertically extending slots in the needle cylinder and between the slots containing the cylinder needles. The terry loop forming instruments are supported for vertical sliding movement in the slots and cams are provided at the knitting station for raising and maintaining the terry loop instruments at a relatively high level as the cylinder needles are lowered to form terry loops from a terry yarn and to form body yarn stitch loops of a body yarn. The terry loop forming instruments are adapted for use with a circular hosiery knitting machine having at least one knitting station and being adapted to knit socks and the like.