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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