Milky generally means water and the mixing of engine oil and tranz/hyd fluid producing a milky oil is a new one to me.
I believe your tractor uses Ford/New Holland 134 hyd trans fluid
But you can also use CaseIH Hytran (the best) or JohnDeers HyGuard (real close 2nd best)
Condensation over time will cause this or if you leave the tractor outside a leaky sean around the shifter, fill breather or any seal on the top of the transmission
Definatly change the oil and filter and try to get all the milky oil out before puttin the new stuff in
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Today's Featured Article - What Oil Should I Use? - by Francis Robinson. I keep seein this question pop up over and over again in discussion groups all over the web. As with many things there are often several right answers and a few wrong ones. Some purist I'm sure will disagree to no end with what I will tell you but most of us out here in the real world don't really care do we ? Some of them only bring their noses down out of the air long enough to look down them anyway. If you are like me you are only doing this old tractor stuff because you enjoy it. You
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