With SoW and Lev (or SoE), you can run across the midpoint of the canyon down to the far shore where it dips down to meet the water - BEWARE! There are many beasties about, they all See-Invis, and there is NO WAY BACK that I have yet found (short of a port of some kind).

In addition to forming useful trading partnerships, a less scrupulous individual, may find that using a leash on a hobgoblin inclines them to perform more menial work. Zone in, put the zonewall on your left, run past the treants, and you'll see the canyon. Most hobgoblins fixate on social status, and many constantly strive to advance their social position. Hobgoblins are found along the canyon walls and down near the river in PoN, as well as in an underwater tunnel where there are TONS of them (so I've heard) - they may be found elsewhere, but there are PLENTY in this area. They are not edible (to my knowledge) and weigh 1.0 (and they DO stack, hehe). It seems to be a common-uncommon drop - after a day spent fighting them, our group had perhaps 18 or so. From there they have taken control of the trade routes along the. Hobgoblin Meat drops off of the Hobgoblins in the Plane of Nightmares. The Kroth Magg hobgoblins run the trade city of Glip Dak in the Troll Hills of Thar.

Since I am long-winded to start, I will spare you another post, heh - this is just a cut-and-paste of my post found under the Beginner Magic Manual Quest info (where someone posted the same question as you did).

How to trade with hobgoblins