SASKATOON, Saskatchewan (Reuters) - A rally in grain and oilseed prices will likely give a further boost to shares of Canadian companies that provide farmers with everything from fertilizer to tractors.

That's welcome news for a sector of the stock market that was hammered by shockwaves from the global financial crisis, which knocked grain prices from record highs and prompted many farmers — no strangers to boom and bust cycles — to rethink spending plans.

"The question is, where does the farmer spend his money when he's feeling better about the grains?," said Robert Winslow, an analyst with Wellington West Capital Markets.

"If grain prices are trending higher, the ag stocks will in general move higher as well."

Winslow said potential winners include farm technology providers like Hemisphere GPS.

He also likes Ag Growth Income Fund, a maker of grain augers and bins, which serves overseas markets where demand is especially sensitive to moves in grain prices.

While last year's highs are still far off, benchmark July futures prices of spring wheat and canola, Canada's two largest crops, have jumped 28 percent and nine percent respectively since March 30.

Farmers used to the stomach-churning highs and lows of grain prices had reined in discretionary spending. But a rare second straight year of good prices could pry open their wallets again, analysts said.

What's unusual about the latest round of high prices is they buck the agriculture trend of prices falling to exaggerated lows from high points, said Brian Oleson, chair of the University of Manitoba's agribusiness department.

"This is incredibly healthy, rather than going through that cycle," he said. That health, many industry experts say, will spread to farm-dependent companies if grain prices remain buoyant.

Viterra, Canada's largest grain handler, is a double winner, Oleson said. Higher prices and the resulting rise in margins will give farmers incentive to plant big crops — which is significant for a volume-based business like grain-handling.

The Saskatchewan-based firm was confident enough in its own prospects to recently offer to buy Australia's ABB Grain Ltd in a $1.2 billion share and cash deal.