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For future reference, the best place to farm it is in Cronley's Hideout, as there's one certain spawn, a boss that always drops at least one dynamite plus a possible second one, a great chance of dropping one from a scrap pile, and a small chance of getting more dynamite from the Arsonist enemies.
Where the dynamite is.
In the mines, and in Cronley's hideout.
You can go back to Act 1 later to blow up the Hidden Path site and the others.
Those areas have enemies that are way above the rest of the enemies you have fought so far. You aren't expected to be able to fight them yet since you shouldn't have dynamite yet.
And this is because when you cross the bottlenecks that are blocked with rocks, you'll find that the monsters are at least level 40+.
But I can understand why you want to farm dynamites. I did it myself. :P (It's because for first time players, they don't know what's behind those rocks and want to explore.)