For any non-negative integer k the k-th osculating dimension at a given point x of a variety X embedded in projective space gives a measure of the local positivity of order k at that point. In this paper we show that a smooth toric embedding having maximal k-th osculating dimension, but not maximal (k + 1)-th osculating dimension, at every point is associated to a Cayley polytope of order k. This result generalises an earlier characterisation by David Perkinson. In addition we prove that the above assumptions are equivalent to requiring that the Seshadri constant is exactly k at every point of X, generalising a result of Atsushi Ito.The author is supported by the V.R. grant NT:2010-5563. arXiv:1307