According to Colin Fly of the AP (via the Chicago Tribune) Brewers GM Doug Melvin said he's not involved in any trade talks now. Many writers have wondered about Milwaukee's interest in Jake Peavy, but the Brewers aren't currently negotiating with the Padres.
"We don't have any trade discussions going on with anybody," Melvin said.
As Fly points out, the Brewers have the 9th best ERA in the game and are tied for first in the NL with 27 quality starts so they don't need starting pitching as badly as most expected them to. The rotation of Yovani Gallardo, Manny Parra, Braden Looper, Dave Bush and Jeff Suppan has been holding up well for the first-place Brewers.