Yep, most likely water in the oil. I don't know much of the tractor's past so I'm not sure how water got inside it. Since buying it I've always stored it inside.
From what I understand though, the man I bought it from had to do a decent amount of work to get it going, so it's entirely possible that before he bought it and fixed it up the tractor sat exposed to the elements.
Hopefully this weekend I can get the Original outta the workshop and pull the 106 in, that way I can give the rear end a good cleaning.
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'70 107 with k301 engine swap
'71 106 with 38" deck
'70 147 R with factory replacement k321, 42" deck
'61 Original with 38" timed deck
'63 70 "pinkie"
1863 with 54" deck
'46 Farmall H, '50 Farmall Cub
105 x2 (parts)
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