We study smoothing of pencils of curves on surfaces with normal crossings. As a consequence we show that the canonical divisor of $overline{mathcal{M}}_{g,n}$ is not pseudo-effective in some range, implying that $overline{mathcal{M}}_{12,6},overline{mathcal{M}}_{12,7},overline{mathcal{M}}_{13,4}$ and $overline{mathcal{M}}_{14,3}$ are uniruled. We provide upper bounds for the Kodaira dimension of $overline{mathcal{M}}_{12,8}$ and $overline{mathcal{M}}_{16}$. We also show that the moduli of $(4g+5)$-pointed hyperelliptic curves $mathcal{H}_{g,4g+5}$ is uniruled. Together with a recent result of Schwarz, this concludes the Kodaira classification for moduli of pointed hyperelliptic curves.