-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 MMsRv6osTzhodUHZdX5g/sC3UqLWJDG0EPwcPcNocjUsqgyoJBcp/S1IKYXNUSy5
 sKe72EtKEtmdHuBUdiuGCQ==

<SEC-DOCUMENT>0001179110-05-017531.txt : 20050906
<SEC-HEADER>0001179110-05-017531.hdr.sgml : 20050905
<ACCEPTANCE-DATETIME>20050906152151
ACCESSION NUMBER:		0001179110-05-017531
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050901
FILED AS OF DATE:		20050906
DATE AS OF CHANGE:		20050906

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:			WARJONE JAMES E
		CENTRAL INDEX KEY:			0001187320

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11488
		FILM NUMBER:		051070219

	BUSINESS ADDRESS:	
		STREET 1:		777 108TH AVENUE
		CITY:			BELLEVUE
		STATE:			WA
		ZIP:			98004
		BUSINESS PHONE:		4254626000
</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>2005-09-01</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001187320</rptOwnerCik>
            <rptOwnerName>WARJONE JAMES E</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>9420 SE 5TH STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>BELLEVUE</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>98004</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <transactionDate>
                <value>2005-09-01</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1242</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>14.50</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3155</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Restricted stock grant pursuant to 1993 Non-Employee Director Restricted Stock Plan</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Margaret Von der Schmidt, attorney-in-fact for James E. Warjone</signatureName>
        <signatureDate>2005-09-06</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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