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I'm going to second Sol A. The goblins there drop scads of fine steel weapons and respawn with reasonable speed. Just kill them all and loot the ones you see holding daggers. Note that any goblin with the word "young" in its name only drops rusty weapons, but those only spawn near the entrance.
If your faction with the gnomes in Sol A is good enough (raise it by killing Kobolds in Sol B, and the Kobolds also drop fine steel, but do not show it in their paws so you need to loot them to see if they have any weapons) you can get good prices selliing the other stuff the goblins drop to the merchant in the Gnome Castle who sells the 10-slot, 100% weight reducing bags.
The goblins in Permafrost drop fine steel weapons, as well, and like the goblins in Sol A you can see their weapons in their hands. You can sell the other stuff they drop to the Magus in the Wayfarer camp in Everfrost.
Another place to farm them is from the Tesch Mas Gnolls outside Splitpaw in South Karana. Actually, these gnolls are now all over the place in South Karana, though they are concentrated in the area nearest to Splitpaw. There's a merchant in the Centaur village and one up at the top of the Aviak treehouse.
Also, many of the frogloks in Trakanon's teeth drop fine steel weapons, and they are almost never camped. Merchants are a bit farther away from these, however.
If this is for the Magi Rune then any fine steel piercing or blunt weapon works.
Strokker~Fennin Ro What makes a man a man? A friend of mine once wondered. Is it his origins? The way he comes to life? I don't think so. It's the choices he makes. Not how he starts things, but how he decides to end them.John Myer~Hellboy 2004
If you can AoE the gobbies in Permafrost then that may be a good option, since not only can you snag many FS weapons in a clearing, but you get Ice Goblin Blood and Permafrost Crystals to boot (and the crystals are used for Divine Crystalline Glaze and Barb Journeyman Smithing)
the gobbies in Perma also drop the unrefined ore needed to complete the restocking quest at the HQ Ore vendors around Norrath, always a nice thing to have if you're also a smithy
Dyllwin Dalewalker 94th Heirophant of Karana Master Artisan, Member of the 2100 club! Tailoring 300 - Fletching 300 Jewelry 300 - Smithing 300 Brewing 300 - Baking 300 Pottery 300
In East Karana is a wandering rogue; the path includes from the merchant area to the crossroad area near the North Karana bridge. He always drops the daggar.
In Toxulia Forrest straight out from the Paineel book you find the rogue brother of the rogue in East Karana. He also drops the daggar every time.
It depends on what you consider "farming", but I've been camping Karnors recently (doing monk epic) and have gotten scads of fine steel that I've handed across to my wizard for making practice runes. Most of it daggers and staves (which also work for the runes), though with the occasional swords.
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