Now am back this morning. Even though I could not breathe freely, I was still curious to know what could have gone wrong. Who am I to say a solid program like CF7 has a bug (a roach or something more creepy)?To know if CF was actually generating those emails, I changed the SMTP server IP address to something wrong so that I could catch the mails in the underlivered mail folder (<cfroot>/MailUndelivr/) and ran the code again. Also did a dump of the email addresses the email should go to.
What I saw made me stop. CFMAIL generated email only for the first record in the dumped query. Because that was the only mail I saw in the undelivered folder.
I googled my problem to discover that other guys out there are having the same problem. For now, I will stick to CFLOOP/CFMAIL combination while MM sort things out.