A Loden cape is a coat of Tyrolean origin, made of a thick, water resistant woollen material with a short pile, first produced by peasants in Austria. The fabric is derived from the coarse, oily wool of mountain sheep and has a traditional bluish-green colour. The name is derived from Middle High German 'lode' or from Old High German 'lodo', meaning 'coarse cloth'. 
To produce Loden fabric, strong yarns are woven loosely into cloth which then undergoes a lengthy process of shrinking, eventually acquiring the texture of felt and becoming quite dense. It is then brushed with a fuller's teasel and the nap is clipped, a process which is repeated a number of times until the fabric provides good warmth for the weight, and is relatively supple, windproof and extremely durable.  A subclass of the wools known as "Melton"