I have found the location of the dead merchants where the axe is supposed to be. I only found two bodies and both of them are "empty" corpses. Is there another corpse I am missing? Or is this a glitch - I played the game before and had random things like ladders and keys missing... No, not kidding I even compared screenshots...
Conan stood paralyzed in the disruption of the faculties which demoralizes anyone who is confronted by an impossible negation of sanity.
The axe is on the ground, near a body rather than in it. There should be the sparkle effect near the head of the first body you get to, just inside the shade of the trees (with a book near the body, as well).
