BAY STREET-Grain rally points to gains for Canada farm plays

* Machinery dealers, farm tech companies seen gaining

* Grain handlers would be winners with higher prices

* Could put pressure on processors and millers (In U.S. dollars unless noted)

By Rod Nickel

SASKATOON, Saskatchewan, May 31 (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 (HEM.TO: Quote, Profile, Research).