Seems to be going back further than colonialism in Brazil as it seems:
"There is much evidence that homosexuality was socially accepted among Amerindians.
[…]
In the Treaty Descritivo do Brasil of 1587 written by Gabriel Soares de Souza, both male and female homosexuality are spoken of among the Tupinambás.
[…]
The Tupinanes, neighbors of the Tupinambás, were "much more subject to nefarious sin than the Tupinambás." In 1576, the also Portuguese Pero de Magalhães de Gândavo reported that the Indians "indulge in addiction [of sodomy] as if there had been no reason for men in them." There are stories about transvestism among the guaicurúes, such as the so-called cudinas, castrated men who dressed as women and went on to perform exclusively feminine tasks, such as weaving fabrics. In the bororo tribe, the young men were gathered in the baito (or men's house), where women could not enter and boys have sexual intercourse with each other naturally. In indigenous medicine itself, it was common for treatment to be performed through the sexual relations of the pajé with the sick, including anal sex, as is the case among the coerunas. Among the shamans, healing knowledge was passed from I made his students older by means of sexual intercourse, where the student surrenders to the oldest.
(es.wikipedia.org/wiki/Homosexualidad_en_Brasil#Pueblos_precolombinos)