There are many good places to surf in Brazil.   Many good sand beach breaks along Sao Paulo's coast, and many surf Shops in the city of Sao Paulo, which is an hour from the coast.   The north coast of Sao Paulo has good waves at Juquehy, Maresias, and Ubatuba.   Of course it is crowded on weekends, but pick and choose and you'll find uncrowed waves.   Believe it or not... wetsuits are often recommended with cooler water temperatures during the winter, spring and fall.
Always check out Travel Danger Factors.
Visitors to Brazil may consider Rio de Janeiro as an alternative.  Although expect a lot of crowds but sometimes safety in numbers is worth considering.
Others have talked about  a small fishing village of Jericoacoara  but we think this more popular to windsurfers.   A very beautiful and non stressful atmosphere.   A very interesting phenomenon created by high tides along a river is worth investigating for some really wild Surfing the Amazon.
 Other favorite spots are Fernando de Noronha : warm - clear water, reef, beach, coral, point breaks.  Good consistent wind conditions, north swells, and shark problem similar to most Caribbean breaks.  Bahia:  often blown out and inconsistent with outside reef breaks. Espirito: multiple scenarios but not often consistent.  Peranmbuco: known for sharks reef and beach.
 Natal:  regular south swells on the eastern most point of Brazil, because of it's location traveling north and south will greatly be effected by swell direction originating from vastly different scenarios.

BAHIA SURF History, Chat, Photos of Bahia, Brazil
BRAZIL SURFCAMS Camerasurf Brazil, Links to Cameras, News, Surfreports in Brazil
CHILE SURF Pichilemu - Surf Paradise In Chile
RIO SURF PAGE Local information Rio
SURF CHILE Chilean Surfsite, with Weather, Reports, Maps, Photos.
SURFWEB South American - Argentinian - surfsite.
UBATUBA SURFCAM Ubatuba, north of Sao Paulo, Brazil, incl. Surfcam
RIO SURF PAGE Brazilian Surf Page - Pedro Ribeiro
PERU SURF Peruvian surf pages and resources in progress
X-TREME SPORTS PERU Discover the beaches in Peru, learn how to surf.
WAVES Mag out of South America - Alceu Toledo