The Collaborative International Dictionary of English v.0.48:

Canaster \Ca*nas"ter\, n. [Sp. canasta, canastro, basket, fr. L.
   canistrum. See Canister.]
   A kind of tobacco for smoking, made of the dried leaves,
   coarsely broken; -- so called from the rush baskets in which
   it is packed in South America. --McElrath.
   [1913 Webster]