-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 JkUExCcnFMjiFPwjFDQ2idsZKoBgl58B0t6sBZATLShxPdP1BL0q8iP2S1bbuxDH
 dvXmd8Z5A21r58sN/XGYhA==

<SEC-DOCUMENT>0001179110-05-016841.txt : 20050822
<SEC-HEADER>0001179110-05-016841.hdr.sgml : 20050822
<ACCEPTANCE-DATETIME>20050822175444
ACCESSION NUMBER:		0001179110-05-016841
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050818
FILED AS OF DATE:		20050822
DATE AS OF CHANGE:		20050822

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PENFORD CORP
		CENTRAL INDEX KEY:			0000739608
		STANDARD INDUSTRIAL CLASSIFICATION:	GRAIN MILL PRODUCTS [2040]
		IRS NUMBER:				911221360
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			0831

	BUSINESS ADDRESS:	
		STREET 1:		7094 SOUTH REVERE PARKWAY
		CITY:			ENGLEWOOD
		STATE:			C0
		ZIP:			80112-3932
		BUSINESS PHONE:		303-649-1900

	MAIL ADDRESS:	
		STREET 1:		7094 SOUTH REVERE PARKWAY
		STREET 2:		-
		CITY:			ENGLEWOOD
		STATE:			C0
		ZIP:			80112-3932

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PENWEST LTD
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Kortemeyer Timothy Michael
		CENTRAL INDEX KEY:			0001336753

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11488
		FILM NUMBER:		051042071

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(319) 396-0991

	MAIL ADDRESS:	
		STREET 1:		156 AUTUMN WOODS DRIVE NW
		CITY:			CEDAR RAPIDS
		STATE:			IA
		ZIP:			52405
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-08-18</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000739608</issuerCik>
        <issuerName>PENFORD CORP</issuerName>
        <issuerTradingSymbol>PENX</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001336753</rptOwnerCik>
            <rptOwnerName>Kortemeyer Timothy Michael</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>156 AUTUMN WOODS DRIVE NW</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>CEDAR RAPIDS</rptOwnerCity>
            <rptOwnerState>IA</rptOwnerState>
            <rptOwnerZipCode>52405</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>1</isOther>
            <officerTitle></officerTitle>
            <otherText>General Manager</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>NQ Stock Option (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>13.93</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-08-18</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>10000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>13.93</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2006-08-18</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2015-08-18</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>COMMON</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>10000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>10000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Options vest and are exercisable in 25% increments beginning with the first anniversary from date of grant.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Margaret Von der Schmidt, as attorney-in-fact for Timothy M. Kortemeyer</signatureName>
        <signatureDate>2005-08-22</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----