This is a question many people ask. The simple reason why is because your finger has more resistance to movement (from mass, and also friction).
And they do not cancel out because the two opposite forces aren't directed at the same object. A force (singular) is acting on each object that are pushing against each other. So "A FORCE" is acting on the finger and "A FORCE" is acting on the pencil. They don't cancel out because the opposite forces are being directed on two different objects.
Now to explain why the pencil moves...
The Newtons (N) is the unit of force. The equation is "Force = mass * acceleration"
Let's say you push the pencil with your finger with 2 Newtons.
Now listen carefully...
A force of 2 Newtons is acting on the pencil and will move.
A force of 2 Newtons is ALSO acting on your finger.
The reason why your body doesn't move while the pencil moves is because of the mass and any relevant friction. This is based on Force = mass * acceleration.
The pencil has a small mass so will experience some acceleration (velocity is increasing from a velocity of zero). Basically 2 Newtons = (small mass)*(relatively large acceleration).
And since the pencil is rolling friction isn't really relevant.
Your body (that has your finger) has a very large mass in comparison. So in a frictionless and ideal environment, your body (finger) will experience very SMALL acceleration because you have a large mass. Remember that both the pencil and finger receives the same force. So 2 Newtons = (large mass)* (relatively small acceleration).
So your body will experience a very SMALL acceleration in an ideal environment.
In reality there is friction (which acts opposite of any force). Basically if there is a force pushing you forward, then any friction will pull you backwards (this is why when you push a box along a surface, it slows down since friction moves opposite of the force).
In the case of reality, there is a LOT of friction that can exist between your shoes and the ground (or you and the chair). The reason why you don't move at all in reality is that the force of friction would be much greater than the force of 2 Newtons that comes from pushing the pencil.
(and if you want to know more, you only accelerate if you overcome the static friction that exists, which is the friction that exists when you are at rest. In the case of pushing a pencil pencil, the static friction is greater than 2 Newtons, so you don't move at all).
This is the most thorough explanation I can give. Hope it helps.